Assessment of Service Quality and Customer Satisfaction of Non-Life Insurance Sector in Bangladesh: A Comparative Study of Public and Private Firms

  • Sunil Kumar Roy
  • Md. Ibrahim


This article will present the ‘Service Quality and Customer Satisfaction Assessment’ of non-life insurance sector of public and private firms in Bangladesh. The analysis is based on the SERVQUAL model which is consisted with five generic dimensions like ‘Tangibility,’ ‘Reliability,’ ‘Responsiveness,’ ‘Assurance,’ ‘Empathy,’ and 22 statements relating to expectations and perceptions of the customer. Another two statements have been included for identifying the relationship between service quality and customer satisfaction. There is a gap analysis between expectation and perception conducted under this model. When customer’s perception is higher than their expectation that indicates better service quality provided by nonlife insurance firms. Inversely, when customer’s expectation is lower than perception that indicates low service quality provided by nonlife insurance firms. As per this investigation, the comparative standard service ascertainment of govt. as well as individual sector has shown that service quality of govt. area nonlife insurance firm is significantly high up than individual sector in 13 items out of 22 items except 1 called “Understand the specific needs of their customers of empathy dimension”. In others, 9 statements out of 22, there is no difference between the service standard of public and private nonlife insurance firms. Apparently, service quality of govt. sector is high up than individual or private sector. But, in the areas of the 22 statements of SERVQUAL model both sectors public and private should progress their overall service quality level. Because, a simultaneous relationship is activated in the middle of standard service quality and customer satisfaction. In this study, correlation and regression results have shown that standard service quality has a muscular influence on customer pleasure. So, a high quality service leads a high level customer satisfaction.Key words: Service Quality, Customer satisfaction, Tangibility, Reliability, Responsiveness, Assurance, Empathy, Perception, Expectation