Comparative study on motor insurance practices of public and private insurance companies focusing on customer satisfaction: A case study of Ethiopian Insurance Corporation and some selected private insurance companies
DM Sheaba Rani, Sekata Kenea Gobena
The study entitled “Comparative Study on Motor Insurance Practices of Public and Private Insurance Companies Focusing on Customer Satisfaction; ACase study of Ethiopian Insurance Corporation and some selected Private Insurance Companies” was conducted with the general objective of giving a bird’s eye view on the motor insurance practices in the public and some selected private companies and to assess its implication on customer satisfaction. In order to achieve this objective, the study was conducted using descriptive research design since satisfaction can be measured using survey. Accordingly, as the study focuses on motor insurance, all employees and management engaged in underwriting of motor insurance, handling motor claims and sales of motor insurance constitute the population of the study. Census method was used as their number is less and does not create difficulty on data analysis and further in order to make the study complete. In addition to these, 40 non- randomly selected clients (voluntary clients) that have motor insurance with these insurers were considered and made part of the population. The investigation reveals that premium was the most competing variable among insurers than any other variable. Motor premium rate was relatively expensive in the public insurance company. Marketing and sales departments were not doing on marketing the services of the companies, especially in the public insurance company and further, insurers were not regularly visiting their respective clients and therefore they were rarely seen in loss prevention activities. Insurers were not using advertising as a tool of business promotion. In addition, Motor claims are not being paid as properly as they are and not settled on time. The other observed problem is that shortage of Cranes have been hindering claims department to timely satisfy customers in collecting damaged vehicles in both classes. On the other hand, the private insurance companies take shorter time to issue new policy. The motor policy wordings were too difficult to clients to understand, as it was a direct copy from foreign insurers. Customer care trainings were going well with all insurers but insurers have never used customer-handling service as a competing variable. There was no initiation and interest on the part of insurers to collect feedback from their customers. All insurers were applying extra loading on older vehicles in contrary to the literature.