Abstract:
The study investigates the customer satisfaction, switching costs, service quality and
customer loyalty on customer switching behavior in general insurance industry. There is
so far lack of research has been conducted concerning the customer satisfaction, switching
costs, service quality and customer loyalty on customer switching behavior in general
insurance industry. This research study plan to examine that problem and fulfill the
empirical gap in insurance policy holders in general insurance industry'
Insurance sector in Sri Lanka is growing very fast. Today, more and more private section
insurance companies entering to the market, and it cause to strong the competition in the
country among the insurance companies. So, retain the existing customers by satisffing
them and attract potential customers is a crucial issue for the insurance companies. As there
are 27 insurance companies operate in Sri Lanka insurance industry offering various kind
of insurance products, customers have vast range of choices and they have become more
powerful decision maker in the market. Customers are able to quickly switch to another
service provider, when they dissatisfied with the curreirt service provider. So that it is more
important to identiff what are the key factors affect to customer switch from the current
service provider. So, giving more attention to the customers and providing customer's need
can prevent from customer switching in general insurance industry.
The purpose of this study is to identifu the factors affect for customer switching in general
insurance industry. Tq achieve this goal 213 questionnaires were distributed among
customers who are the general insurance policy holders in selected four insurance
companies in Badulla district. This study is based on four factors that affect to customer
switching behavior and these factors were extracted from the literature. The findings of
this study disclosed that most important factors that are affect to the customer switching
are customer satisfaction, service quality and customer loyalfy and the least important
factor is customer switching costs.
