Today, more companies are now recognising the importance of satisfying and retaining customers. Satisfied customers constitute the company’s customers relationship capital. The insurance sector is an infrastructural pillar of the financial services sector and the economy as a whole. It plays a key role in economic development. Despite this, there are a number of challenges that the industry continues to face. This study aimed at examining the factors influencing customer retention in the insurance brokerage firms with reference to HP brokerage firm in Nairobi. The study sought to examine whether quality of service, perception of customers on premium concession and claims turn-around period influence customer retention in insurance firms. The study employed the study design. The sample consisted of HP insurance customers (n=74) and Managers. Simple random sampling and purposive sampling methods were used to sample the customers and the managers respectively. Data Collection instruments included questionnaire and interview guide. Questionnaire was used to collect data from customers while interview guide was used with the managers. The study used SPSS (Statistical Package for Social Sciences) to process data. Descriptive statistics such as frequencies and percentages were used to summarize the data. From the analysis, the study revealed the following: The main factors behind customers’ retention included quality services, customer satisfaction, and firm openness. The study revealed that customers had various expectations from the firm. These included good service delivery, competent staff and concession placed on various premiums. The study also found that the customers’ retention was affected by the competition from other insurance firms which offered competitive premiums. The study recommended the management of HP insurance to draw tangible strategies to counter the wave of customer defection and to encourage retention. The management should also address pending issues such as settling claims in time and offering affordable premium concession.
Abstract Info
Author: Mary Maingi
Course / Degree: MBA
Institution: Catholic University of Eastern Africa, The
Journal: Journal of Research Abstracts – JRA
Year: 2009
Citation
Maingi, M. (2009). Factors Influencing Customer Retention in the Insurance Brokerage Firms. A Case Study of HP Brokerage Firm in Nairobi. Journal of Research Abstracts – JRA, Volume 3, 2009.
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