Service Quality in Private Passenger Automobile Insurance

J. Tim Query, Robert E. Hoyt and Min(Enya) He

Journal of Insurance Issues, 2007, vol. 30, issue 2, 152-172

Abstract: This study extends previous research on service quality in the private passenger automobile insurance industry by providing empirical evidence using an improved proxy for the value of service. The endogeneity of the value of service is recognized and treated statistically with the two-stage least squares approach. The empirical model also includes a number of control variables that affect the service quality of an insurer. The measures of quality are customer satisfaction scores that are collected from two consumer surveys: the Consumer Reports Survey and the DALBAR Survey. Of critical interest in the analysis of these two different surveys is their respective treatment of claims problems and non-claims problems. For customers who have filed claims with their insurers, more weight is given to the value of service they perceive. In particular, how fast their insurers handle their claims is much more important to these customers than to the general population of policyholders. In contrast, for general consumers of automobile insurance, their satisfaction is based on a number of factors. Specifically, the insurer’s capacity to provide service, output in auto lines, advertising expenditures, and distribution system all affect the quality of service perceived by consumers.

Date: 2007
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.insuranceissues.org/PDFs/302QHH.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wri:journl:v:30:y:2007:i:2:p:152-172

Access Statistics for this article

Journal of Insurance Issues is currently edited by James Barrese

More articles in Journal of Insurance Issues from Western Risk and Insurance Association
Bibliographic data for series maintained by James Barrese ().