Assessing Customer Satisfaction Factors in Microinsurance Implementation

Thesis Abstract

The rapid expansion of microinsurance services in developing economies has heightened the need to understand the factors influencing customer satisfaction, as consumer perceptions critically affect the sustainability and growth of microinsurance schemes. Despite increasing investments and policy initiatives aimed at broadening access to insurance for low-income populations, there remains limited empirical evidence on the specific determinants shaping customer satisfaction within this context. This study aims to identify and evaluate the key factors that influence customer satisfaction in microinsurance implementation, with a focus on service quality, affordability, trust, communication, and claims process efficiency. The specific objectives include examining the relative importance of these factors, exploring demographic influences on satisfaction levels, and assessing the impact of customer satisfaction on loyalty and continued participation in microinsurance schemes. The research adopts a mixed-methods approach, combining quantitative and qualitative techniques to provide a comprehensive understanding of the satisfaction determinants. The quantitative phase employs a cross-sectional survey design, targeting a sample of 400 microinsurance policyholders selected through stratified random sampling from three major microinsurance providers operating in rural regions. Data collection instruments consist of a structured questionnaire developed based on existing validated scales and tailored to the local context, ensuring content validity. The questionnaire measures customer perceptions of service quality, trust, communication effectiveness, claim handling, and affordability, along with customer satisfaction and loyalty intentions. The qualitative component involves semi-structured interviews with 20 key informants, including microinsurance agents, customer service managers, and satisfied and dissatisfied policyholders, to explore nuanced perspectives and contextual factors influencing satisfaction. Validity and reliability of the survey instruments are established through expert reviews, pre-testing, and Cronbach’s alpha coefficients exceeding 0.8 for all scales. Quantitative data are analyzed using multiple regression analysis to determine the relationships and relative contributions of the identified factors to customer satisfaction, complemented by factor analysis to validate the underlying constructs. The qualitative data are thematically analyzed using NVivo software, allowing for triangulation with quantitative findings and enriching the interpretation of satisfaction determinants. The expected findings suggest that service quality, trust, and claims handling are the most significant predictors of customer satisfaction in microinsurance, with affordability and effective communication also contributing positively. Demographic variables such as education level and income indicate moderating effects on satisfaction levels. Results are anticipated to demonstrate a strong relationship between customer satisfaction and loyalty, indicating the importance of delivering satisfactory service experiences for microinsurance providers. These findings are expected to fill significant gaps in the current literature by providing context-specific insights into microinsurance consumer perceptions, especially in rural settings where trust and service quality perceptions can markedly influence uptake and retention. The study contributes to knowledge by integrating the theoretical frameworks of SERVQUAL and Trust Theory to explain satisfaction dynamics in microinsurance. It offers practical implications for microinsurance providers, policymakers, and regulators by highlighting the critical service components that enhance customer satisfaction and retention. The main conclusion underscores the importance of customer-centric approaches, emphasizing service quality and trust-building measures as strategic priorities. The study recommends targeted interventions to improve claims processing efficiency and transparency, tailored communication strategies to address customer concerns, and capacity-building initiatives to reinforce trust among vulnerable populations. It also suggests further research into longitudinal impacts and the role of digital platforms in enhancing customer satisfaction in microinsurance contexts.