Digitalization of Insurance Claim Services and Efficient Customer Service Delivery in Nigeria
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Date
2024-11
Journal Title
Journal ISSN
Volume Title
Publisher
LCU
Abstract
Claim settlement is one of the core insurance functions. It is important for an efficient claim
management system enhanced by digitalization to boost the confidence of the insured in the
claim settlement process and to project a good image of the insurance industry. This study
examines the digitalization of insurance claim services and its prospects for efficient customer
service delivery in Nigeria. The objectives of this study are to ascertain if insurance claims
services have been digitalized in the Nigerian insurance industry, to examine if digitalization
promotes efficient customer service delivery in the industry, and to investigate if digitalization
can result in reduced premiums for the insured. A descriptive research design was used for the
study. The population consist of all insurance companies in Nigeria from which a sample is
drawn using a multistage sampling technique to select 180 staff members from 6 insurance
firms. Data were obtained through the instrumentation of the questionnaire forwarded to
selected staff and analyzed using descriptive and inferential statistics. The test of hypotheses
revealed that insurance claim services have been digitalized in the Nigerian insurance industry,
also a significant positive effect of claim process automation as a parameter of digitalization of
insurance claims was observed on customer satisfaction, a proxy of efficient customer service
delivery. Moreover, digitalized claim services have a positive and insignificant effect on
premium reduction for insureds. We conclude that the digitalization of insurance claim services
can promote efficient customer service delivery in the insurance industry. It is recommended
that more effort should be made to increase the digitalization of insurance claim services and
regulators should ensure that the public benefits from the digitalization process through
efficient service delivery and premium reductions.
Description
Keywords
Digitalization, Claims, Insurance, Service Delivery, Nigeria.