Customer Satisfaction with Claim Settlement in Nepali General Insurance Companies

Abstract

Purpose: This study investigates claimants’ perception of claim settlement practices and their perceived satisfaction regarding claim settlement in general insurance companies in Nepal.

Design/methodology/approach: The study employed a qualitative interpretative phenomenological design and collected data from the purposively selected claimants of six insurance companies. Thematic analysis was used to analyze the responses.

Findings: The four themes derived from the data – ‘assorted experience’, ‘incongruent fiduciary duty’, ‘less loyalty, more attrition’, and ‘poor customer experience’ – reveal that satisfaction of the claimants during the claim settlement practice is not encouraging to keep the customers loyal and to make a repeat purchase of the insurance service.

Conclusion: The findings reveal that the satisfaction of claimants cannot be explained solely by the service they encounter during claim processing. Timely settlements, fair compensation, transparent communication, effective expectation management, and post-settlement follow-up collectively shape customers’ perceptions. This highlights the need for a more holistic and customer-centered approach to claim management in the non-life insurance sector.

Implications: The findings have implications for both insurers and policyholders. Both these parties may work to design claim settlement mechanisms strategically to mutually imbibe the related ambiance between the insurer and the insured. Insurance companies may put in place a claim settlement process that will lift the confidence level of the claimants. 

Originality/value: The study contributes to the limited body of qualitative research on post-purchase experiences in Nepal’s non-life insurance sector and provides insights for practitioners and policymakers seeking to improve claims management practices.

JEL Classification: D12, G22, G28, L84