The Impact of Service Quality on the Financial Performance in Insurance Industry with references to General Insurance Industry

Abstract

Insurance sector is a major contributor to the financial savings of the household sector in the country, which are further channelized into various investment avenues. The overall growth in the insurance industry has been positive. From 2000 onwards, the private players have started entering the market. The private players have made more gains in a short period than anyone could imagine. They have succeeded in putting the public players on the defensive for retention of their corporate accounts in fire and engineering segments that are profitable. On the other hand, the public players are now focusing on retaining the existing customer rather than the expansion strategy. The public players are now more vulnerable to lose their pre-eminent position.

The private players aim at the customer satisfaction through their marketing programmes. By that they want to achieve their financial performance of their company. Hence, it is essential to concentrate on the marketing aspects to achieve the financial performance of the public players. The changing face of insurance industry stress the need for paradigm shift in public players policies also. Hence, the present study focuses on the financial and marketing performance of public players and also the relationship between the two performances especially among the public players for some policy implications.