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Abstract
The insurance industry in Indonesia has experienced steady growth; however, its insurance penetration rate remains relatively low compared with other Southeast Asian countries. Credit Life Insurance plays an important role in mitigating credit risk for financial institutions while providing financial protection for borrowers. In this context, service quality becomes a key determinant of customer satisfaction. This study aims to examine the effect of service quality on customer satisfaction in Credit Life Insurance using the Service Performance (SERVPERF) model within the Stimulus–Response theoretical framework. A quantitative explanatory design was employed with 159 insured in the Greater Jakarta area selected through purposive sampling. Data were collected through an online questionnaire and analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM). The results indicate that service quality explains 68.5% of the variance in customer satisfaction. Technology and Personalized Financial Planning show the strongest influence, while other dimensions—Assurance, Competence, Tangibles, and Corporate Image—demonstrate positive but relatively smaller effects. These findings highlight the growing importance of digital service capability and personalized financial services in shaping customer satisfaction in the modern insurance industry. The study contributes to extending SERVPERF application in the Indonesian life insurance context.
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References
- (AAJI), A. A. J. I. (2024). AAJI Daily News: Credit life insurance is still growing until the end of 2024. https://aaji.or.id
- AAJI. (2024). Press release: Performance of the life insurance industry January–December (full year) 2024. https://aaji.or.id/RuangMedia/siaran-pers---kinerja-industri-asuransi-jiwa-januari---desember-(full-year)-2024
- Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211. https://doi.org/10.1016/0749-5978(91)90020-T
- Al-Hawary, S. I. S. (2024). Corporate image and its impact on customer satisfaction in the insurance industry. Journal of Financial Services Marketing, 29(1), 15–28. https://doi.org/10.1057/s41264-023-00225-9
- Bagozzi, R. P. (1986). Principles of marketing management. Science Research Associates.
- BenScott, C. (2021). Service quality in insurance companies. Annals of the University of Oradea, Economic Science Series, 30(1), 171–176.
- Chen, M. F., & Chang, C. H. (2013). Towards green trust: The influences of green perceived quality, green perceived risk, and green satisfaction. Management Decision, 51(1), 63–82. https://doi.org/10.1108/00251741311291319
- Cronin, J. J., & Taylor, S. A. (1992). Measuring Service Quality: A Reexamination and Extension. Journal of Marketing, 56(3), 55–68.
- Gefen, D. (2002). Customer loyalty in e-commerce. Journal of the Association for Information Systems, 3(1), 27–51. https://doi.org/10.17705/1jais.00022
- Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate data analysis (8th ed.). Cengage Learning.
- Kapoor, G. T., & Husain, A. (2023). Assessing perceived service quality in the life insurance sector. Journal of Management and Entrepreneurship, 17(4), 90–99. https://doi.org/10.21844/jme.17.4.6
- Khurana, S. (2013). Service quality and customer satisfaction in life insurance sector. International Journal of Management and Social Sciences Research, 2(3), 1–6.
- Likert, R. (1932). A Technique for the Measurement of Attitudes. Archives of Psychology, 140, 1–55.
- Loan, M. T. (2023). Studying customers' satisfaction with service quality of life insurance in Vietnam. International Journal of Professional Business Review, 8(6). https://doi.org/10.26668/businessreview/2023.v8i6.1763
- Mehrabian, A., & Russell, J. A. (1974). An approach to environmental psychology. MIT Press.
- Mishkin, F. S., & Eakins, S. G. (2021). Financial markets and institutions (9th ed.). Pearson Education.
- Nguyen, B., & Simkin, L. (2023). The dark side of digital personalization: An agenda for research and practice. Journal of Services Marketing, 37(2), 145–160. https://doi.org/10.1108/JSM-05-2021-0173
- Nguyen, P., Nguyen, H., & Tran, L. (2018). The impact of service quality on customer satisfaction in the insurance industry. Journal of Asian Finance, Economics and Business, 5(3), 123–132. https://doi.org/10.13106/jafeb.2018.vol5.no3.123
- Nunnally, J. C. (1978). Psychometric theory (2nd ed.). McGraw-Hill.
- Oliver, R. L. (1980). A Cognitive Model of the Antecedents and Consequences of Satisfaction Decisions. Journal of Marketing Research, 17(4), 460–469.
- Oliver, R. L. (1997). Satisfaction: A Behavioral Perspective on the Consumer. McGraw-Hill.
- Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12–40.
- Prabasiwi, A. I., Arifin, Z., Subiadi, R., & Soegianto, S. (2023). Insurance and legal protection for deceased mortgage debtors. Journal of Juridical Studies, 2(3), 210–220. https://doi.org/10.26623/jj.v2i3.10492
- Saunders, A., & Allen, L. (2010). Credit risk management in and out of the financial crisis (3rd ed.). John Wiley & Sons. https://doi.org/10.1002/9780470622360
- Secretariat, A. (2022). ASEAN Insurance Surveillance Report 2022. ASEAN. https://asean.org
- Sekaran, U., & Bougie, R. (2016). Research Methods for Business: A Skill-Building Approach (7th ed.). Wiley. https://doi.org/10.1002/9781119266846
- Setiady, T., Widyastuti, S., & Pramono, R. (2024). The effect of employee competence and service quality on customer satisfaction in financial institutions. Journal of Asian Finance, Economics and Business, 11(1), 401–410. https://doi.org/10.13106/jafeb.2024.vol11.no1.0401
- Sukraini, T. T., & Elfarosa, K. V. (2018). The application of actuarial in determining credit life insurance premiums in microfinance institutions. Journal of Business Management and Entrepreneurship, 12(1), 45–53. https://doi.org/10.24843/MATRIK:JMBK.2018.v12.i01.p07
- Supervision, B. C. on B. (2019). Sound practices: Implications of fintech developments for banks and bank supervisors. Bank for International Settlements.
References
(AAJI), A. A. J. I. (2024). AAJI Daily News: Credit life insurance is still growing until the end of 2024. https://aaji.or.id
AAJI. (2024). Press release: Performance of the life insurance industry January–December (full year) 2024. https://aaji.or.id/RuangMedia/siaran-pers---kinerja-industri-asuransi-jiwa-januari---desember-(full-year)-2024
Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211. https://doi.org/10.1016/0749-5978(91)90020-T
Al-Hawary, S. I. S. (2024). Corporate image and its impact on customer satisfaction in the insurance industry. Journal of Financial Services Marketing, 29(1), 15–28. https://doi.org/10.1057/s41264-023-00225-9
Bagozzi, R. P. (1986). Principles of marketing management. Science Research Associates.
BenScott, C. (2021). Service quality in insurance companies. Annals of the University of Oradea, Economic Science Series, 30(1), 171–176.
Chen, M. F., & Chang, C. H. (2013). Towards green trust: The influences of green perceived quality, green perceived risk, and green satisfaction. Management Decision, 51(1), 63–82. https://doi.org/10.1108/00251741311291319
Cronin, J. J., & Taylor, S. A. (1992). Measuring Service Quality: A Reexamination and Extension. Journal of Marketing, 56(3), 55–68.
Gefen, D. (2002). Customer loyalty in e-commerce. Journal of the Association for Information Systems, 3(1), 27–51. https://doi.org/10.17705/1jais.00022
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate data analysis (8th ed.). Cengage Learning.
Kapoor, G. T., & Husain, A. (2023). Assessing perceived service quality in the life insurance sector. Journal of Management and Entrepreneurship, 17(4), 90–99. https://doi.org/10.21844/jme.17.4.6
Khurana, S. (2013). Service quality and customer satisfaction in life insurance sector. International Journal of Management and Social Sciences Research, 2(3), 1–6.
Likert, R. (1932). A Technique for the Measurement of Attitudes. Archives of Psychology, 140, 1–55.
Loan, M. T. (2023). Studying customers' satisfaction with service quality of life insurance in Vietnam. International Journal of Professional Business Review, 8(6). https://doi.org/10.26668/businessreview/2023.v8i6.1763
Mehrabian, A., & Russell, J. A. (1974). An approach to environmental psychology. MIT Press.
Mishkin, F. S., & Eakins, S. G. (2021). Financial markets and institutions (9th ed.). Pearson Education.
Nguyen, B., & Simkin, L. (2023). The dark side of digital personalization: An agenda for research and practice. Journal of Services Marketing, 37(2), 145–160. https://doi.org/10.1108/JSM-05-2021-0173
Nguyen, P., Nguyen, H., & Tran, L. (2018). The impact of service quality on customer satisfaction in the insurance industry. Journal of Asian Finance, Economics and Business, 5(3), 123–132. https://doi.org/10.13106/jafeb.2018.vol5.no3.123
Nunnally, J. C. (1978). Psychometric theory (2nd ed.). McGraw-Hill.
Oliver, R. L. (1980). A Cognitive Model of the Antecedents and Consequences of Satisfaction Decisions. Journal of Marketing Research, 17(4), 460–469.
Oliver, R. L. (1997). Satisfaction: A Behavioral Perspective on the Consumer. McGraw-Hill.
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12–40.
Prabasiwi, A. I., Arifin, Z., Subiadi, R., & Soegianto, S. (2023). Insurance and legal protection for deceased mortgage debtors. Journal of Juridical Studies, 2(3), 210–220. https://doi.org/10.26623/jj.v2i3.10492
Saunders, A., & Allen, L. (2010). Credit risk management in and out of the financial crisis (3rd ed.). John Wiley & Sons. https://doi.org/10.1002/9780470622360
Secretariat, A. (2022). ASEAN Insurance Surveillance Report 2022. ASEAN. https://asean.org
Sekaran, U., & Bougie, R. (2016). Research Methods for Business: A Skill-Building Approach (7th ed.). Wiley. https://doi.org/10.1002/9781119266846
Setiady, T., Widyastuti, S., & Pramono, R. (2024). The effect of employee competence and service quality on customer satisfaction in financial institutions. Journal of Asian Finance, Economics and Business, 11(1), 401–410. https://doi.org/10.13106/jafeb.2024.vol11.no1.0401
Sukraini, T. T., & Elfarosa, K. V. (2018). The application of actuarial in determining credit life insurance premiums in microfinance institutions. Journal of Business Management and Entrepreneurship, 12(1), 45–53. https://doi.org/10.24843/MATRIK:JMBK.2018.v12.i01.p07
Supervision, B. C. on B. (2019). Sound practices: Implications of fintech developments for banks and bank supervisors. Bank for International Settlements.