Assessing Customer Trust and Satisfaction in Digital Insurance at BluePeak Insurance

Thesis Abstract

In the rapidly evolving digital insurance landscape, customer trust and satisfaction are critical determinants of organizational success and competitive advantage, especially at BluePeak Insurance, which has transitioned significantly towards online platforms to deliver insurance products and services. Despite the increasing adoption of digital insurance channels, there remains limited empirical understanding of the factors that influence customer trust and satisfaction within this context, particularly in relation to perceived service quality, technological usability, and data security concerns. This study aims to assess the level of customer trust and satisfaction at BluePeak Insurance, identify the key determinants influencing these constructs, and explore their impact on customer loyalty and retention. The research objectives include examining the relationship between perceived service quality and customer trust, analyzing the influence of technological ease of use on customer satisfaction, and evaluating the role of data security perceptions in shaping trust. Employing a descriptive cross-sectional research design, the study targeted a population of active digital insurance users at BluePeak Insurance, estimated at 10,000 customers. A stratified random sampling technique was used to select a sample size of 384 respondents, ensuring representation across various demographic segments. Data were collected primarily through structured questionnaires, developed based on validated scales from established models such as the Technology Acceptance Model (TAM), the SERVQUAL model for service quality, and trust constructs from the Literature on online consumer behavior. To ensure instrument validity and reliability, a pilot study was conducted with 50 respondents, yielding a Cronbach’s alpha coefficient exceeding 0.7 for all scales. Quantitative data were analyzed using IBM SPSS Statistics and SmartPLS for structural equation modeling (SEM), with the latter facilitating the assessment of hypothesized relationships among variables while accounting for measurement errors. The study hypothesizes that perceived service quality and technological usability significantly influence customer trust and satisfaction, which in turn impact customer loyalty. The analytical approach involved descriptive statistics, correlation analysis, and SEM to test the proposed model. It is expected that findings will reveal that higher perceived service quality, ease of use, and data security positively correlate with increased levels of trust and satisfaction among BluePeak Insurance customers. Additionally, the study anticipates demonstrating that customer trust mediates the relationship between service quality and satisfaction, ultimately fostering loyalty and continued patronage. The anticipated results are expected to contribute novel insights into the dynamics of customer trust and satisfaction within the digital insurance domain, specifically in the context of BluePeak Insurance. The research will extend existing theoretical frameworks, such as the Technology Acceptance Model and trust theory, by integrating them in a comprehensive model tailored to digital insurance services. This integration aims to deepen understanding of how technological and service quality factors interact to build trust and satisfaction, thereby filling notable gaps in current literature addressing digital insurance customer experience. The main conclusion of the study will underscore the importance of enhancing service quality, usability, and data security to nurture trust and satisfaction in digital insurance platforms. Based on the findings, practical recommendations will be proposed for BluePeak Insurance’s management, including strategies to improve user interface design, strengthen data security protocols, and implement targeted customer education initiatives. The study advocates for ongoing customer feedback mechanisms and continuous service improvements aligned with evolving technological advancements. Future research directions suggested include longitudinal studies to examine trust and satisfaction over time, and comparative studies across different insurance providers to generalize findings within the digital insurance industry. Overall, this research aims to provide actionable insights for insurers seeking to optimize digital channels, foster customer loyalty, and sustain competitive advantage in an increasingly digital economy.