Conceptual Model of Outcomes of Perceived Fair Insurance Services

Due to intense competition and the emergence of new insurance companies at the Slovenian market, insurance services are becoming increasingly complex, while sales activity by insurance companies is becoming more marketing-oriented at the same time. Insurance services are, by nature, extremely multifaceted and this is reflected in the way in which the insurance market is manipulated. As insurance companies often change the content of their products (insurance conditions, insurance coverage, price, evaluation damage cases, etc.), it is important to know who benefits most from the relationship between insurance companies and customers and whether the content of insurance products is generally fair to customers. Insurance services involve various kinds of transactional interventions, about a new policy and queries raised during the term of an insurance policy or making an insurance claim, in which salespeople are in contact with customers. Some insurance companies demand an intensive sales orientation from their salespeople, gaining new customers as quickly as possible above providing them with full and transparent service. The reason for this may be due to the pressures of management in insurance companies, be it related to income or internal competition. In many cases, the content of insurance products can lead to conflicts and misunderstandings after an insurance policy has been agreed. This is particularly evident when policies are terminated or claims are made. This paper presents different viewpoints in research regarding which insurance services are perceived as fair by customers. The research question was: what is the impact of perceived fair insurance services on customer-insurance company relationship? Using structural equation modelling (SEM) with a sample of n = 200 consumers of insurance services, it has been found that perceived fair insurance services have a significant positive effect on perceived relationship value outcomes, as well as perceived quality of customer-insurance company relationship and customer satisfaction. It has also been found that perceived fair insurance services are directly confirmed by customer satisfaction with perceived quality of customer-insurance company relationship. The study also has found that perceived relationship quality has a significant and strong positive effect on perceived relationship value outcomes. The study has further found that perceived relationship value outcomes and perceived relationship quality have a significant positive effect on customer satisfaction. Perceived fair insurance services, then, are determined by the relationship between insurance companies and customers and the extent to which customers are satisfied with the insurance services they use. The study’s findings are extremely important for institutions operating in the financial and insurance service market for the purpose of creating a relationship strategy.