YANGON UNIVERSITY OF ECONOMICS

DEPARTMENT OF COMMERCE
MASTER OF BANKING AND FINANCE PROGRAMME

CUSTOMER SATISFACTION OF GENERAL INSURANCE

CLAIMS PROCESS IN
KBZMS GENERAL INSURANCE COMPANY LIMITED

SU SU KYI
MBF (DAY) 3th BATCH

FEBRUARY, 2023

i
 CUSTOMER SATISFACTION OF GENERAL INSURANCE
CLAIMS PROCESS IN
KBZMS GENERAL INSURANCE COMPANY LIMITED

A thesis submitted as a partial fulfillment of the requirements for the degree of

Master of Banking and Finance (MBF)

Supervised by Submitted by

Dr. May Su Myat Htway Aung Su Su Kyi

Professor Roll No. 51
Department of Commerce MBF (Day) 3rd Batch
Yangon University of Economics Yangon University of Economics

February, 2023

ii
 ACCEPTANCE

Accepted by the Board of Examiners of the Department of Commerce, Yangon

University of Economics, in partial fulfillment for the requirement of the Master
Degree, Master of Banking and Finance.

BOARD OF EXAMINERS

-----------------------------------
Prof. Dr.Tin Tin Htwe
(Chairman)
Rector
Yangon University of Economics

----------------------- -----------------------
(Supervisor) (Examiner)
Dr. May Su Myat Htway Aung Dr. Tin Tin Htwe
Professor Professor / Head
Department of Commerce Department of Commerce
Yangon University of Economics Yangon University of Economics

----------------------- -----------------------
(Examiner) (Examiner)
Dr. Aye Thanda Soe Dr. Phoo Pwint Nyo Win Aung
Professor Associated Professor
Department of Commerce Department of Commerce
Yangon University of Economics Yangon University of Economics

February, 2023

iii
 ABSTRACT

This study aims to explore the general insurance claim process in KBZMS and to
analyze the factors affecting customer satisfaction on KBZMS General Insurance Co.,
Ltd. Between September 2021 and March 2022, KBZMS had 2095 consumers who
requested claims, but only 1900 clients who received compensation. Using Yamane's
sampling Formula, 330 clients who receive claims in KBZMS were selected as the
sample population from among the 1900 consumers who receive claims in KBZMS.
Customers are pleased with the claim initiation/notification process, claim handling
process, claim payment, and service quality, as indicated by the descriptive data. In this
investigation, these primary and secondary data were utilized. This study employs both
qualitative and quantitative research methodologies. There is a positive association
between the claim initiation/notification process, claim handling procedure, claim
payment, service quality, and customer satisfaction, as indicated by the correlation
results. Except for service quality, the claim notification procedure, claim handling
process, and claim payment had a positive and significant effect on customer
satisfaction, as shown by regression analysis. Therefore, it is recommended that
KBZMS pay more attention to service quality due to its impact on customer
satisfaction, invest in digitalizing information-intensive processes to improve
turnaround times, and encourage ongoing internal or external training of their claim
staff to ensure that they have the proper qualifications for the improved claims services
and processes.

iv
 ACKNOWLEDGEMENTS

The complement of the study could not have been possible without the effort
and cooperation through the significant persons. First of all, I would like to express my
sincere gratitude to Professor Dr. Tin Tin Htwe, the Rector of Yangon University of
Economics, for giving me the opportunity to study the Master of Banking and Finance
(MBF) programme and for her permission to write this thesis.
I also would like to thank Professor Dr. Tin Tin Htwe, Head of the Department
of Commerce, Yangon University of Economics for her permission, kind support, and
enthusiasm for this study.
In addition, I would like to acknowledge and give my warmest thanks to my
supervisor Professor Dr. May Su Myat Htway Aung for her patience, motivation,
encouragement, valuable suggestions, and her wealth of knowledge. Her guidance and
advice helped me in all the time of writing the thesis until its completion.
I also wish to thank my respected professors and lecturers who imparted their
time and valuable knowledge during the course of my study at the Yangon University
of Economics, my friends, and all persons who contributed in various ways to my
thesis. I would like to thank my colleagues, friends, and classmates for their
encouragement, support, and willingness in providing useful data for this study.
I would also like to thank my family for their continuous support and patience
throughout the course of my study and my life. I thank each and every one who the
contributed to this study.

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 TABLE OF CONTENTS

Page
ABSTRACT i
ACKNOWLEDGEMENTS ii
TABLE OF CONTENTS iii
LIST OF TABLES v
LIST OF FIGURES vi

CHAPTER I INTRODUCTION 1
1.1 Rationale of the Study 3
1.2 Objectives of the Study 4
1.3 Scope and Method of the Study 5
1.4 Organization of the Study 5

CHAPTER II THEORETICAL BACKGROUND 6

2.1 Nature of Insurance 6
2.2 Importance of Customer Satisfaction 7
2.3 Theories for Marketing Mix and Service Quality 8
2.4 Claim Management and Claim Process 13
2.5 Previous Studies 18
2.6 Conceptual Framework of the Study 20
CHAPTER III BACKGROUND STUDY OF KBZMS GENERAL 23
INSURANCE COMPANY LIMITED
3.1 Profile of KBZMS General Insurance Company Limited 23
3.2 Claims Process of KBZMS General Insurance Company 24
Limited
3.3 Service Quality of KBZMS General Insurance 30
Company Limited

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CHAPTER IV ANALYSIS OF THE EFFECT ON INFLUENCING 32
FACTORS OF CUSTOMER SATISFACTION
4.1 Research Design 32
4.2 Reliability and Validity Test 33
4.3 Demographic Characteristics of Respondents 34
4.4 Descriptive Analysis on Customer Satisfaction 36
4.5 Analysis on the Influencing Factors on Customer 42
Satisfaction
CHAPTER V CONCLUSION 45
5.1 Findings and Discussions 45
5.2 Suggestions and Recommendations 47
5.3 Needs for Further Studies 48

REFERENCES
APPENDICES

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 LIST OF TABLES

Table No. Title Page

4.1 Analysis Results of Construct Reliability 33
4.2 Analysis Results of Construct Validity 33
4.3 Demographic Characteristics of Respondents 34
4.4 Demographic Profile of Frequency of Insurance Claims and 35
Insurance Service
4.5 Mean Rating Scale 34
4.6 Customer Perception of Claim Initiation/Notification Process 37
4.7 Customer Perception of Claim Handling Process 38
4.8 Customer Perception of Claim Payment Process 39
4.9 Assessment of Service Quality on Claim Process 40
4.10 Overall Mean values of Variable 41
4.11 Assessment of the Customer Satisfaction On Claim Process 41
4.12 Correlation of Influencing Factors on Customer Satisfaction 42
4.12 Regression Result of Independent Variables and Customer 43
Satisfaction

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 LIST OF FIGURES

Figure No. Title Page

2.1 Insurance Claims Management on Customer Satisfaction 18
2.2 Claim Settlement Quality on Repurchase Intention 19
2.3 Service Quality Effect on Customer Satisfaction 20
2.4 Conceptual Framework of the Study 21

iv
 CHAPTER (1)
INTRODUCTION

Insurance is a mechanism to transmit risk from one person to another individual

or institution payable in return; it is also a means of protection from financial loss,
typically across a large group of people. This process is known as "spreading the risk,"
and it is also known as "insurance." The insurer is the insurance company that sells
insurance policies, and the insured is the policyholder who purchases the insurance
policy and transfers the risk to the insurer. The insurer is the firm that sells insurance
policies. They enter into a contract with an insurance company in which an individual
or corporation agrees to pay the insurance company in exchange for financial protection
or reimbursement of loss caused by an occurrence that is covered by the policy. The
insured have a significant amount of choice among the many insurance companies;
there are several important considerations to take into account when choosing one,
including whether or not it is licensed to conduct business in each state, whether or not
it obtains at least three price quotes and compares them, whether or not it is likely to
be financially sound for many years, whether or not it effectively resolves all
complaints, whether or not it handles claims in a fair manner, in a timely manner, and
in a manner with which the insured is comfortable, The concept of sharing or pooling
losses lies at the heart of the insurance industry. The term "pooling" refers to the process
of distributing a loss that was sustained by a chosen few across the entirety of the group
in order to substitute an average loss for the actual loss. The construction of the policy,
the selling of the insurance product, promotional marketing, the underwriting process,
the claim settlement process, and several other services are some of the many processes
that are provided by insurance companies. Submitted to a general insurance company
in the form of an insurance claim, a formal request for reimbursement that is based on
the terms and conditions of the insurance policy is made. Before approving the claims
and paying the insured, general insurance companies conduct investigations to
determine whether or not they are legitimate. Claim settlement refers to the financial
assistance provided by the insurer to the policyholder in the form of compensation in
the case of a loss. Not only during the process of selling policies, but also during the
payment of claims, customers are able to observe the primary service that insurance
firms provide to the community. Customers can see this service in action throughout
the claim settlement process. The difficulty that the insurance sector is currently facing
is Claim Management, which is one of the contributing factors to the negative image
of the business as well as the low penetration of insurance services. Claims reporting,
the company receiving the claims, claims procedures and documents, preventing and
detecting fraud, timely claim process, claims assessment, complaints, and dispute of
claim settlement, and supervision for related of claims services should all be included
in the general insurance claims management process. The extent to which a customer
is satisfied impacts either directly or indirectly on the firm. They should be concerned
about the wants and requirements of consumers in order to obtain loyalty from
customers, as customer satisfaction is one of the service quality aspects, and customer
satisfaction is one of the elements that determines service quality. If the company can
provide excellent services that are of a higher standard than those provided by its
competitors that offer the same services, it will be able to attract new clients. They
regard the satisfaction of their customers as the key to making a profit, thus they put a
lot of effort into making those customers happy. The level of pleasure enjoyed by
customers is directly proportional to both the standard of the services offered by the
business and the outcomes of the situations they find themselves in.
As a result of the growth of the insurance market in Myanmar, more and more
individuals are becoming aware of the significance of insurance as a means of
compensating for financial loss caused by risks, particularly those associated with
cargo, property, automotive accidents, and medical treatment. To improve the
efficiency of the insurance claims process in Myanmar, general insurance businesses
need to be systematized, regularized, developed, and controlled before they can be
considered viable options. The people of Myanmar have always been aware of the fact
that there are losses that could have been avoided due to the law of uncertainty,
elements that are beyond human control, and human mistakes.
KBZ GI Holding Company and the Japanese insurance firm Mitsui Sumitomo
Insurance have collaborated to form KBZMS General Insurance Company Limited as
a joint venture (MSI). KBZMS was initially created in June 2012 under the name of
IKBZ Insurance Co. Ltd. In November 2019, the firm entered into a joint venture with
MSI and changed its name to KBZMS General Insurance Co. Ltd. In Myanmar,
KBZMS was the very first private insurance company to be granted an official license.
The KBZMS brand can be found in twenty (20) different cities across twenty-
two (22) different branches. KBZMS is able to meet the requirements for all types of
general insurance, including comprehensive auto insurance, marine insurance, fire
insurance, and health insurance, for both individuals and groups. KBZMS increased its
product portfolio on October 1, 2020, to include Commercial Lines, which cover
Industrial All Risk, Construction All Risk/Erection All Risk, and Bailee's Liability
Insurance products. This expansion took effect immediately.
Because of the intense competition in the insurance industry, it is essential for
companies to have a solid understanding of the customers they intend to serve. In
addition, ensuring that customers' needs are met is one of the most important things
that the firm can do to ensure that its success will continue. KBZMS places a strong
emphasis on ensuring the complete satisfaction of their clients with the services they
provide in order to both acquire new clients and keep the ones they already have.
KBZMS is obligated to find out the answer to this question because it is essential to
any successful enterprise to be aware of the preferences of one's clientele. Furthermore,
acquiring this knowledge is necessary to completely comprehend the areas in which a
company ought to concentrate the majority of its efforts.

1.1 Rationale of the Study

Insurance is nothing more than a promise, thus it cannot be compared to other
types of things that are tangible. It is of the utmost importance for a firm to maintain
its credibility in order to keep its promise and live up to the expectations of the
consumer. In addition, when it comes to pleasing their consumers during the claims
process, insurance companies often find themselves up against a number of challenges.
One of the competitive tools that businesses use in their pursuit of a stronger position
in the market, the maintenance of their existing customer base, and the acquisition of
new clients is the provision of a service known as the claim. With an ever-increasing
focus on providing superior quality of service to consumers, this results in a significant
shift in the insurance industry. The nature of the gap that exists between the customer's
anticipated level of service and the actual level of service received by the customer
determines the quality of the service that the client believes to be provided. The quality
of the service is considered to be above and beyond adequate when the actual service
is better than what was anticipated. The service provider can set themselves apart from
competitors by providing quality that is uniformly superior than that of their
competitors. The satisfaction of one's clientele is the most effective technique for the
expansion of an enterprise and the increase of its profits. A business that has the goals
of pleasing its customers and keeping them as clients will make an effort to comprehend
the prerequisites and prerequisites of those clients.
A demand made on an insurance company to fulfill its portion of a promise made while
writing the contract with the insured is known as a claim on an insurance policy. A
claim is defined as a demand made by an insured person to an insurer for the payment
of benefits under a policy. This demand is made in the form of a claim. A demand made
by a person or organization attempting to recover from an insurer for a loss that may
be covered by an insurance policy is also considered an insurance claim. This demand
can be made in the form of an insurance claim.
Despite this, the customer still has certain misunderstandings regarding the process of
filing a claim for general insurance. People have the misconception that the procedure
of filing an insurance claim is difficult and that insurance companies do not pay claims
easily or equitably. The insurers are able to address five key issues, including gaining
an information advantage, taking greater control of the claim process, understanding
their customers, selecting the appropriate claims model for their business, and
developing mutually beneficial relationships with other service providers. The
transformation of the claims processing can be accomplished by the insurers through
the utilization of modern claims systems that are aligned with robust business
intelligence, document and content management systems. This will result in an increase
in the claims processing's efficiency and effectiveness. It is expected that the insurers
will establish a good claim management process that will include the following
elements: proactiveness in recognizing and paying legitimate claims; determining
exactly the reserve associated with each claim; reporting regularly; minimizing
unnecessary costs; avoiding protracted legitimate disputation; dealing with claimants
carefully; and expediting claims handling. As a result of the growth of the insurance
market in Myanmar, more and more individuals are becoming aware of the significance
of insurance as a means of compensating for financial loss caused by risks, particularly
those associated with cargo, property, automotive accidents, and medical treatment. To
improve the efficiency of the insurance claims process in Myanmar, general insurance
businesses need to be systematized, regularized, developed, and controlled before they
can be considered viable options. The people of Myanmar have always been aware of
the fact that there are losses that could have been avoided due to the law of uncertainty,
elements that are beyond human control, and human mistakes. In order to provide the
customer with the best possible claims service, KBZMS operates in accordance with
the international standards for the best practices in the claims process. The claims
system was broken up into three distinct phases by KBZMS; these phases are the claim
notification and initiation procedure, the claims handling process, and the claims
settlement process. During the claim notification process, the KBZMS staff educates
the customer on how to properly submit the claim initiation and how to properly fill
out the claim form. The purpose of the verification step in the process of handling
claims is to ensure that there was coverage in place against the risk that led to the
occurrence of the loss at the time of the loss. KBZMS investigated the documents kept
in the office of the insurer to confirm that the pertinent policy was in effect throughout
the relevant time period and that the policy covers the events that resulted in the loss.
The procedure of settling a claim is handled by KBZMS once it has been determined
how much money was lost and everyone has come to an agreement on how much that
loss was worth. As a result, the purpose of this study is to analyze the truth of the claim
system used by general insurance firms in KBZMS as well as the misconceptions held
by customers regarding the procedure of claim settlement.

1.2 Objectives of the Study

The main objectives of the study are as follows:
1. To identify the general insurance claims process in KBZMS General Insurance
Co., Ltd
2. To analyze the factors affecting customer satisfaction on KBZMS General
Insurance Co., Ltd

1.3 Scope and Method of the Study

The satisfaction of customers with the claims process for general insurance is the
primary topic of this research conducted by KBZMS General Insurance Co., Ltd.
During the period beginning in September 2021 and ending in March 2022, KBZMS
had a total of 2095 consumers who filed claims, but only 1900 of those clients were
compensated. Based on Yamane's sampling Formula, 330 clients who obtain the claims
in KBZMS were chosen to represent the sample population out of a total of 1900 clients
who get the claims in the system. It was necessary to make use of both primary data
and secondary data in order to accomplish the goals of this study. Using standardized
questionnaires ranging from 1 to 5 points on a Likert scale, the primary data were
obtained. The secondary data were gathered from many websites and printed sources,
including textbooks, lecture notes, research papers on customer satisfaction, monthly
journals, and websites of local and international insurance businesses, amongst other
sources. An application of regression analysis was used to investigate the factors that
play a role in determining the level of customer satisfaction.
1.4 Organization of the Study
This investigation is broken down into five different chapters. In the first
chapter, you will find an introduction, as well as the rationale for the study, the purpose
of the study, the scope and technique of the investigation, and the organization of the
study. In the second chapter, we discussed the overall purpose and theoretical
framework of the investigation, as well as the idea of insurance, claim management, the
significance of customer happiness, and linkage. The third chapter provides a profile of
KBZMS General Insurance Company (KBZMS) as well as its claims process. The
fourth chapter of KBZMS is an investigation of the consumer satisfaction with the
general insurance claim process. The conclusions, findings, and discussions,
suggestions, and recommendations, as well as the requirement for additional research
are presented in chapter five.
 CHAPTER (2)
THEORETICAL BACKGROUND

This chapter includes six sections. Firstly, mention the nature of Insurance and
secondly mention the importance of the customer satisfaction. Section 3 mentions the
theories of the study, section 4 mentions the claim management and claim process,
sections 5 mentions previous studies. Finally, mentions the conceptual framework of
the study.

2.1 Nature of Insurance

Insurance is a social tool that allows for the transfer of risk from a group of
people known as the "Insured" to a third party known as the "Insurer" in order to pool
loss experiences. This allows for the statistical prediction of losses and allows for the
payment of losses from premiums by all members who transferred the risk
(Zeleke,2007). Each insured person makes a relatively small payment to the insurance
provider known as a "premium." Compared to the loss that was passed to the insurer,
the charge is quite minimal (relative to the sum insured). When a risk occurs, the
insurance pays the unfortunate person from the pot of this accumulated money (Rejda.
G, 2002:4). Insurance is a financial structure that transfers possible losses to an
insurance pool in order to spread the costs of unforeseen losses (Dorfman, 2009). An
organization can trade its uncertainty for more assurance through the use of insurance.
The unpredictability felt encompasses whether a loss will happen, when it will happen,
how severe it will be, and how many there may be in a year (Atkins & Alderman, 2004).
In exchange for the organization paying a set premium, the insurance provider
undertakes to cover any losses that come under the provisions of the policy (Vaughan
E. and Vaughan, 1995). Gambling and insurance are distinct from one another and
differ significantly in two ways. While gambling introduces a new speculative risk,
insurance manages an existing pure risk. Because neither the insured nor the insurer
are placed in a situation where the winner's benefit comes at the expense of the losers,
insurance is socially beneficial. Because the gains of the victors are at the expense of
the losers, gambling is socially unproductive. (McNamara,2017) Seven fundamental
principles govern the insurance contract between the insurers and the insured:
maximum good faith, insurable interest, proximate cause, indemnification,
subrogation, contribution, and loss reduction. (2018) McMinn The contract shifted the
risk; no new risk was created. This is similar to how insurance and speculation work.
But there is a significant distinction between insurance and speculating. These are the
kinds of designs that each one must manage, and the consequent variations in
contractual agreements. Because insurable risks can meet the conditions, insurance
transactions typically entail the transfer of insurable risks. The law of large numbers
can be used in insurance to lower an insurer's objective risk. Speculation includes the
transfer of risk, not the reduction of risk, and it deals with hazards that are often not
insurable. The law of big numbers does not allow the losses to be applied.
(McNamara,2017) The main socioeconomic advantages of insurance include loss
indemnification, anxiety and panic reduction, source of investment capital, loss
prevention, and credit enhancement. After a loss happens, the indemnity function
enables the company to continue operating while also helping the affected families and
individuals regain their financial stability. After a loss happens, worry and panic are
reduced since the insured is confident that their insurance will cover the expense. The
insurance serves as the source of the money for accumulating and investing in capital.
Additionally, you can borrow money from company firms and collect insurance
premiums in advance of any losses so that you won't have to pay them right away. The
insurance industry participates actively in various loss prevention initiatives and hires
a variety of loss prevention staff, including experts in occupational safety and health,
fire prevention and safety engineers, and other fields. The improvement of credit is the
final socioeconomic advantage of insurance. Because it provides more assurance that
the loan will be repaid, insurance creates a borrower's superior credit risk. Therefore,
having insurance can improve one's credit standing. 2008 (E. Rejda)

2.4 Importance of Customer Satisfaction

One of the most important factors of a successful business is customer
happiness. Customer satisfaction is characterized as a general assessment based on the
entire purchasing and using the good or service experience across time (Fornell,
Johnson, Anderson, Cha & Bryant 1996). Additionally, a market-oriented company
views customer satisfaction as one of the most significant results of all marketing
activities and views it as the most significant predictor of future behavioral intention
(Huber and Herman, 2001). Satisfaction is still a powerful indicator of how people will
behave (Croin, Brand, and Huit, 2000). Without clients, a service provider would find
it difficult to continue operating. As a result, every organization that provides services
must proactively define and gauge the level of customer satisfaction (Reincheld, 1996).
When expectations are not met by experience, they are unsatisfied; when expectations
are met, they are satisfied; and when expectations are exceeded, they are extremely
satisfied or excited (Duchesse, 2002). Customer satisfaction, according to Kobylanski
and Pawlowska (2012), is the perception of receiving adequate systematic management
through the process of continual improvement. Customers demand that firms have a
dynamic, seamless service delivery process that is easy to use, fulfills standards, and
satisfies customer expectations. Customer expectations must be respected when
customer happiness is increased. Customer satisfaction has a direct positive impact
when services and goods are of high quality. Employee satisfaction must be attained
before reaching customer satisfaction because, when employees have a good influence,
they can contribute to raising the customer satisfaction level. The level of happiness
will vary greatly depending on the stage of the usage or experience cycle one is
focusing on if the service or product usage occurs over time (Lovelock, C & Wright,
2007) Customer satisfaction is influenced by the particular aspects of the good or
service and how well it is perceived. Customer happiness is also influenced by the
customer's emotional reactions, attributions, and impression of equity. (2003) Zeithal
and Bitner. When a customer is happy with the company's product or service, they are
more likely to make repeat purchases and suggest the company's goods or services to
other people. The firm cannot grow if the company disregards the needs of its clients.
(Tao, 2014.)

2.2 Concept and Theories of the Study

This section presented the concept and theories of the study. This study used
the theory of marketing mix and service quality.

(a) Marketing Mix

Considering and defining critical factors like Product, Price, Place, Promotion,
Process, and Physical Evidence that affect the marketing of both their tangible offering
(Products) and intangible performances is made easier for businesses by using the
marketing mix concept, according to Rathod, M., K. (2016). (Service). The extended
marketing mix, sometimes referred to as the service marketing mix, is an essential part
of a service plan and is essential for the greatest service delivery. It is a marketing
strategy tool used to assess market competition. The most effective marketing tactics
for creating private label brand ownership are perceived pricing, in-store private label
communication, and private label dissemination intensity. The three Ps of Participant
(or People), Process, and Physical Evidence, as well as a more extensive and precise
framework for examining the marketing mix of a service offering, were subsequently
added to the four Ps model to expand it, according to Yu, B. (2020). The 7 Ps Model
can be utilized as a generic marketing paradigm in situations like qualitative content
analysis and big data analytics for business/marketing intelligence in addition to being
able to assess the critical marketing components of a service product.

Product
A "Product" is a good or service that a company offers to the market, per Muala
& Qurneh (2012). The definition of "product" is "anything or anything that can be
supplied to the clients for attention, acquisition, or consumption and meets some want
or need." Included are tangible items, goods, people, locations, organizations, or ideas.
A marketer should construct a real product around the core product, and a supplemented
product should be constructed around the core and genuine products. The fundamental
qualities or services that customers obtain when they buy a product are referred to as
the "core product." Contrarily, the word "real product" refers to a product's parts, level
of quality, design, features, brand name, packaging, and other qualities.

Price
The methods and standards that service providers employ to assess value for
money are referred to as price. Price, which includes profit and all direct and indirect
costs, is the monetary worth attributed to an item. Costs have the power to build or
break a business. The science of pricing is still more of an art. The optimal approach to
price something depends on the pricing objective and other significant factors; there is
no universal method. Customers in poor countries, such as Ghana, put the most focus
on price when making purchasing decisions, according to Peter and Donnelly's 2007
research. Before making another purchase from a service provider, clients will consider
past experiences in terms of value for money, according to Mahmood et al. (2014).
Pricing is therefore a crucial factor when creating the marketing mix for a service
business. Particularly in the service sector when there aren't any visible indicators, cost
is a critical indicator of quality. (2004) Bowie et al.
Place
The location of a company's product or service is chosen to make it accessible
to its target market. The restaurant industry regularly uses the adage "location, location,
location," which is crucial to the success of any business. Customers consider location
convenience while deciding which restaurant services to use. A distribution system is
essentially a collection of operations that move items from the supplier to the client,
whereas a distribution channel is a series of organizational actions that include
transferring commodities or services to the final consumer. (2009) Kotler and Keller
Promotion
The use of promotional tactics and components by a service provider to pique
the interest of its target market and elicit a quantitative response is known as promotion.
It serves no purpose if consumers are not aware of a company's product or service.
Customers make informed purchases, thus firms can influence customer choices by
persuading and communicating effectively with them. In the restaurant industry,
successful promotional campaigns can influence patron behavior and decision-making
(Bowie, 2007). The act of alerting clients about the products or services and what may
be done to help them, according to Kotler and Armstrong (2010), is referred to as
promotion. The combination of tools used in advertising, direct marketing, personal
selling, and sales promotion is referred to as the "promotion mix."

People
"People" is the most crucial "P" that distinguishes product marketing from
service marketing (Ergen, 2011). There are two types of employees at restaurants: those
who deal directly with clients, like waiters and waitresses, and those who don't, such
chefs, managers, and cashiers. The degree of a customer's pleasure is largely influenced
by how well they get along with the service provider. Positive customer choice criteria
include smiling when you greet clients, being considerate, and understanding their
issues, among others (Mahmood and Khan,2014). A happy face has a big impact on the
customer's decision. Training, incentive, and empowerment are essential tools since
success can boost employee satisfaction, which benefits customers.

Process
 Surprisingly, the procedure has only been quickly and briefly addressed in
various literature, while having a considerable impact on consumer behavior in the
service industry. Consumer preference research is also essential. These defenses are all
focused on strategies for providing services that maximize customer pleasure. A service
plan and training are required, in accordance with Mahmood et al. (2014), to provide
consistency and high-quality support. The role of processes in restaurant marketing
strategies is influenced by the value chain theory. Consumers of manufactured things
may not be overly concerned about processes, but consumers of services certainly are.
(2011) Akroush

Physical Evidence
Buyers of manufactured goods might not place much importance on processes.
The tangible elements that produce a welcome environment in the service environment
are all physical proof, according to Akroush's (2011) theory. "Most service
organizations largely disregard this," When acquiring a service, there is more
uncertainty because it is intangible, but if it contains physical components, the
uncertainty can be reduced. The physical evidence mix consists of upkeep of the
building and internal design, cleanliness of the floor and signage, temperature
monitoring, and the use of personal objects to enhance the client experience. The
physical environment of a service provider can differentiate them from competitors and
influence the choices of their clients. All aural cues that help deliver the service are
included. It essentially has to do with the physical location where the service experience
is offered.
(b) Theory of Service Quality
The consumer's total perception of the business and its services' relative
inferiority or superiority is referred to as service quality. Customer perception is
critically influenced by service quality. The primary factor in customers' ratings of pure
services will be service quality. When a service is provided with a physical good, the
service quality could be crucial and the product quality would also be important (Bitner,
1994). According to Hoffman (2010), "an attitude developed through a long-term,
holistic appraisal of a firm's performance" is what service quality is. Customers' needs
and wants are seen as expectations, i.e., what they believe a service provider should
deliver rather than would provide. 1988's Parasuraman. He contends that customer
comparisons between expectations can be used to demonstrate service excellence with
regard to the service the customer uses and their impressions of the service provider.
This indicates that the service can be judged exceptional if the customer's perceptions
are higher than their expectations, good if the expectations match the perceptions, and
awful if the expectations don't match. Service quality affects the continuous
improvement of service performance by boosting market share and profit growth,
making it a substantial source of sustained competitive advantage. A higher level of
financial results and a long-lasting competitive advantage result from this perspective
on service quality (Aleksandar, 2005). Service quality was identified by Gronroos
(2001) and Edvardsson (2005) as a significant factor in determining customer
satisfaction that goes beyond consumers' cognitive evaluations of service providers'
offerings to include both emotive and cognitive dimensions. Technical quality,
functional quality, and image are the three parts of the service quality model created by
Gronroos (2001). In this paradigm, a measure of service quality is produced by the
customer's assessments of the perceived performance of the service versus his or her
perceived service quality. The quality of the goods is evaluated by examination. Quality
control can be used to verify standards and discard faulty goods. Due to a specific
aspect of the service, it is unable to evaluate the quality of the service in the same way
as tangible objects. When a consumer receives a service, their perception of the quality
may differ from what they had anticipated. This is known as the service quality
assessment. Gap analysis and performance metrics are the two techniques used to gauge
service quality. The gap analysis model of service quality, according to Parasuraman,
A. et al. (1985), described a series of five distinct influences on the customer's
perception of quality. Here is Gap 1: The discrepancy between what consumers demand
and what management believes they will expect. This entails failing to recognize what
customers anticipate. Gap 2: Inapplicable service quality standards are caused by the
discrepancy between management's ideas of consumer expectations and service quality
requirements. Gap 3: Poor service quality delivery is indicated by the discrepancy
between service quality criteria and service provided. Gap 4: The mismatch between
service delivery and consumer communications, which results in promises not being
kept, Gap 5: The difference between what consumers expect from a service and how
they actually perceive it. This gap is influenced by the size and direction of the other
four gaps that are connected to the marketer's ability to give high-quality service. The
idea of "service quality" is not a standalone concept; rather, it depends on a number of
variables relating to services and service businesses. Tangibles, Reliability,
Responsiveness, Assurance, and Empathy are its five generic dimensions. The
definition of the tangible includes physical infrastructure, machinery, technology, and
personnel appearance. All of these tell clients about the company's level of customer
service, and this dimension also improves the company's reputation. As a result, the
tangibility factor is crucial for businesses, and they must make significant investments
in setting up physical premises. The capacity to deliver the promised service
consistently and accurately is referred to as reliability. This affects how well customers
perceive the quality of the services they receive and how loyal they are. As a result,
businesses need to be aware of what customers expect from reliability. Being
responsive is being ready to assist consumers and offer fast service. This dimension
focuses on the manner in which requests, inquiries, complaints, and difficulties from
customers are handled. Assurance is the ability of a firm and its workers to instill
confidence and trust by their knowledge, good manners, and other attributes. Due to
clients' lack of confidence in their capacity to assess outcomes, it is crucial in the
banking and insurance industries. The empathy dimension is the final component of
service quality. It is described as the considerate, individualized care that businesses
give to their clients. It is emphasizing a range of services that meet various consumer
needs, such as tailored or personalized services.

2.3 Claim Management and Claim Process

This section presented the claim management and claim process.
Claim Management
Claims management is a notion that developed as a result of the operationalization of
two distinct management and claims ideas. The insured's perception of and loyalty to
the insurer is frequently greatly influenced by how the claim is handled by the insurer
(Yusuf & Ajemunigbohun,2015). According to Gallagher (2012), claims management
entails the handling of claims that result from loss events. According to Redja (2008),
the primary goals of claims management are to confirm that a covered loss has
happened in order to pay claims fairly and promptly and to offer direct support to the
insured in the event of a covered loss. Understanding clients, selecting the best claims
model for the company, forging good connections with service providers, getting an
information edge, and exerting more control over the claims process are important
factors that help the claims department achieve its goals (Butler & Francis, 2010).
According to the Organization for Economic Co-operation and Development (2004),
insurance claim administration is a crucial issue for the insured's protection and, as a
result, a top priority for the insurance business because it is a crucial component of
insurance company competition. Therefore, effective claims handling is essential to the
insurer's performance. Clayton (2012) defines the evaluation of the promptness,
fairness, efficiency, and efficacy of benefits as the measurement of claim management
outcomes. When evaluating a system, it is important to consider its promptness,
fairness, efficiency, and effectiveness. Promptness refers to how quickly the major
claim decisions are made, fairness to whether or not decisions are impartial and
consistent across claims, efficiency to whether or not the system's cost results in
acceptable claim outcomes compared to other systems, and effectiveness to whether or
not the claim outcomes adhere to legislative intent. To dramatically improve claims
management and respond to changing circumstances, insurers must implement more
major infrastructure modifications that connect claims processing with corporate
objectives for customer service, operational cost, and risk management. (TIBCO, 2011)
Managing claims entails making countless choices. To get the greatest results for the
insured and insurers, such choices are crucial. decisions on whether or not their claim
is covered; decisions regarding benefits paid and primary services offered; decisions
regarding support with returning to work; etc. Culture and philosophy,
communications, employees or people, infrastructure, claims procedures, data
management, operations, monitoring, and review are among the key elements required
for an efficient claim management process, according to AIRMIC (2009). Because
claims settlement is the culmination of an insurance contract and its application is to
invoke the benefit of the insurance promise, the claims manager's involvement in the
claims process is essential to the existence of insurance firms (Krishnan, 2010; Kapoor,
2008). The assessment of the property following a loss and incorporating technology
into the claims management process are the obstacles, though. Delivering a good client
experience, regulating claims payout and operational expenses, and managing risk are
some additional problems, according to IBM (2011). Delivering a better customer
experience includes taking into account the customer's belief that the insurance
company values the claims filing process above everything else. The insurance industry
needs to put more emphasis on how customers engage with it, including when they
handle claims, renew their policies, and purchase new goods. The majority of all
insurance expenses go toward claim settlements and loss adjustment costs. Insurance
companies that use static, manual processes to manage straightforward claims or that
rely on expert judgment to identify subrogation opportunities will incur extra
expenditures and have worse combined ratios than rivals who use an analytics-based
strategy. A "easy target" for insurers to cut their exposure to risk and minimize losses
is the detection and prevention of unwarranted payments resulting from fraud.

Claims Process
The claim process includes the claim initiation/notification process, claim
handling process and claim payment process.

(a) Claims Initiation or Notification

Most policies require the insured to notify their insurer of a claim as soon as
possible. The initial report might have been verbal, but the insured must complete a
claim form with extra information. In the event of a liability claim, the insured shall
submit to the insurer all correspondence from claimants or their counsel. It is the
responsibility of the insured to show that a loss has occurred and that the loss was
caused by an insured danger. Additionally, the customer must provide proof of the size
of the loss, such as purchase receipts, repair bills, or a valuation (Roff, 2004).
The insurer misses the opportunity to investigate the specifics while they are
still recent when a claim is not submitted soon away. There are other factors at play as
well, which could make the loss worse. An insurer must also distinguish between true
cases and fabrications. Because the paperwork was filed late, the separation is difficult.
When the policy is being signed, the insurance company should advise the policyholder
to submit claims as soon as possible. Additionally, the insurer is urged in the advice to
develop appropriate claim reporting forms and provide the essential information so that
the client can submit a claim.

(b) Claims Handling

Claim Verification: Finding the risk that resulted in the loss and assessing
whether the reported loss was covered by the insurer that had been notified at the time
of the loss are both steps in the verification process. In order to verify that the relevant
policy was in force at the relevant time and that the loss-causing incident was covered
by the policy, this includes verifying the insurer's office records. 2019 (S. Lemma)
The insurer determines whether a reported claim is valid before assuming
liability by confirming that the coverage was in force at the time of the loss, the claimant
has the right to make a claim under the policy, the peril is covered by the policy, the
insured has complied with the policy's terms, and there are no exclusions. (CII, 2007)
Site Survey: The loss that is damaged at the time of the incident is examined
by internal surveyors from the majority of general insurance companies. Following
inspection, surveyors deliver professional evidence of loss and the level of loss to
claims officers. Surveyors advise claims officers and managers on the best ways to pay
the insured and what parts need to be altered or replaced, repaired, or paid for by the
insured at the time of the theft and total loss. If the subject is outside of their professional
purview or the insured has not given consent, it will be sent to external/independent
surveyors. In order to proceed to the following stage, the insured expected to agree with
the extent of the loss and accept the surveyor's professional assessment at the time of
the loss examination. This helps the provider determine whether fraud has occurred.
2019 (S. Lemma)
Claim Review: Claim review, according to James, Lyn, and Rowe (2009),
comprises examining the claim and contrasting the information on the claim form with
that on the proposal form. It also entails interpreting the policy in light of the claim and
economic factors, such as deciding whether the claim is too minor to warrant further
inquiry or the need for more supporting documentation. Another possibility is that a
significant claim might merit further investigation or legal action. The following things
must be established by the insurer: that the policy was in force at the time of the loss;
that the insured's information is true; that the policy covers the peril insured against;
that the insured has complied with the policy's terms and conditions; and that the loss
claimed against does not fall under an exclusion. Claims review is a crucial step in the
claims process due to the potential conflicts brought on by policy interpretation,
economic variables, market behavior, and legal requirements. In order to handle big
concerns accurately and efficiently at this point, including, if necessary, fully
investigating the claim, it is necessary to employ a senior claims handler. At this point,
the claims staff's expertise is essential.
Claim investigation: In certain circumstances, the insurer might not have all
the data required to decide on a claim. As a result, they might be required to work with
an investigator, make questions, and provide the insurer with a report. This mostly
applies to liability and auto claims. In cases where a claim is suspected of being false,
investigations are also necessary. An insurer must appoint a loss adjuster to ascertain
culpability and claim value due to the nature of other claims. Property claims, such as
Fire, Burglary, Domestic Package, All Risks, and Marine, among others, are a good
example of this. A motor assessor figures out the cost of repairs and the severity of the
damage to the vehicle when it comes to automotive claims. The decision of whether to
repair the vehicle or declare it a constructive total loss and pay the insured pre-accident
value is also counseled by him. The insurer owes it to the insured to advise them of the
findings and the following actions after an investigation is complete. The detective
needs to be productive while moving rapidly. The report should be comprehensive,
covering every significant component of the claim, and clearly and logically presenting
the issues (Wedge & Handley, 2003).
Response to Claimant: The initial response usually consists of a thank you or
a request for more information. When the insurer is satisfied with the information given,
they indicate whether they will pay the claim or not. A third choice is to enter into talks
with the insured without making a first offer on the sum or by making a lower offer
than what has been claimed. When liability is acknowledged but not enough money is
claimed to satisfy the insurance, this happens. The insurer must provide the insured
with a thorough explanation of their decision, whether they want to negotiate a
settlement or deny a claim, to ensure that the insured is happy with the outcome and
discourage them from filing a lawsuit. 2009 (James, Lyn, & Rowe).
Disputes are typically settled through negotiation between the parties after
acceptance, with no need for more formal procedures like arbitration or judicial action.
This is undoubtedly the simplest and most economical way to implement the change.
Most of the time, there might not be much to negotiate and the claim might be resolved
swiftly. If negotiations are unsuccessful, the contract may outline an alternative course
of action, such as arbitration and litigation. (S. Lemma, 2019)

(C) Claims Payment

Once all loss adjustment procedures have been completed and the amount of the
loss has been determined, the insured is then entitled to payment. Insurers may choose
from at least four alternative payment options when resolving disputes. Options include
monetary compensation, fixes, replacements, and reinstatements. The language of the
policy typically gives the insured the choice of which technique to choose. S.
ADHIKARI, 2021
In order to understand how the insurer must balance the interests of the claimant
and all other policyholders who have made contributions to the fund when paying
claims, Basaula (2015) conducted a study. The fund should be protected from the
payment of illegitimate claims even when the claimant is entitled to payment as
promised by the insurance contract. Due to several prohibitive elements like Average
and excess/franchise/deductibles that are common in the insurance sector, clients may
not receive their complete payout.

2.6 Previous Studies

Gessess (2018) investigated the effect of motor insurance claims management
on customer satisfaction at Ethiopian Insurance Corporation. The researcher used a
convenience sampling technique to take a sample of 102 customers. Figure (2.1)
presented the conceptual framework of Gessess (2018).

Figure (2.1) Insurance Claims Management on Customer Satisfaction

Insurance Claim Management

Claim Reporting
Claim Reviewing
Claim Response
Towing Service Quality Customer Satisfaction
Evaluation of Damage
Car Repair Process
Complaint Solution

Source: Gessess (2018)

The study's findings indicate a statistically significant relationship between
customer satisfaction and all motor insurance claim management procedures.
Prioritizing "repair handling" and "damage assessment" in the motor insurance claim
management process, followed by "complaint and dispute settlement," according to
Gessese (2018), may increase overall client satisfaction. Hagos (2019) looked into how
the quality of claim settlement affected the likelihood that insurance firms in Ethiopia
would be purchased again. In Addis Abeba, Ethiopia, the researcher used the
convenience sample approach to choose (286) respondents from 17 insurance
companies. Figure (2.2) displayed Hagos, B. (2019)'s conceptual framework.).
Figure (2.2) Claim Settlement Quality on Repurchase Intention

Functional
Quality
Dependent Variables

Technical Repurchase
Quality Intention

Company
Image

Source: Hagos (2019)

The findings indicated a favorable evaluation of the functional quality, company image,
and intention to repurchase but a lack of interest in technical aspects. It indicates that
there were constraints on how claims were settled by the insurance service providers.
Additionally, the quality of claim settlement had a positive and significant impact on
the likelihood of repurchasing. The researcher's overall findings provide significant
factual support for the intuitive idea that enhancing service quality can raise positive
behavioral intentions and lower negative ones. Assessment of service quality and
customer satisfaction in claim service at Nyala Insurance Share Company (NISCO)
was the topic of Kassie's (2017) research. The impact of high-quality service on client
satisfaction was investigated in this study. The SERVQUAL methodology was
employed by the researcher to ascertain how customers at NISCO perceived the quality
of service. Using a practical sampling technique, the researcher chose sample data from
285 NISCO clients. Figure presented Kassie's (2017) conceptual model (2.3).
Figure (2.3) Service Quality Effect on Customer Satisfaction

Tangibles

Reliability

Responsive Customer
Service quality
satisfaction
Assurance

Empathy

Source: Kassie (2017)

All of the service quality characteristics showed a negative confirmation as a
result of the finding that NISCO's service quality is below expectation. The study also
revealed that NISCO clients are less pleased with its services. The study suggested that
the insurance should offer personnel knowledge and expertise to improve the caliber
and skill of the services offered. Additionally, the insurance should spend money on
actual evidence of the service and physical proof..

2.7 Conceptual Framework of the Study

According to the theory review and three of the previous studies, the following
conceptual framework has been constructed. The conceptual framework of the study
presents in figure (2.4)

Figure (2.4) Conceptual Framework of the Study

Claim Initiation / Notification Process

Claim Handling Process

Customer
Claim Payment Process
Satisfaction
Service Quality

Source: Adopted from Gessese (2018)

 The three studies mentioned above served as the foundation for the conceptual
framework of this investigation. One dependent variable and four independent factors
make up this study. According to Gessese's (2018) research, the six components of the
claim management process are positively correlated with client satisfaction. Hagos
(2019) discovered a favorable association between repurchase intention and all claim
settlement dimensions. Since all aspects of service quality have received negative
confirmation, Kassie (2017) discovered that NISCO's service quality falls short of what
customers would hope for. Four independent variables—claim initiation/notification
process, claim handling process, claim payment process, and service quality—are
included in the conceptual framework based on earlier studies. Customer satisfaction is
the dependent variable in this study. The procedure of starting a claim or notifying the
insurance company about an accident is done by the insured. In this process, the insured
must promptly and accurately inform them of the accident, explaining to them the
extent of the loss, how the accident occurred, and the general environment at the time
of the accident. The claim handling procedure is how the insurance provider determines
if a claim is valid or not. With the steps of claim verification, loss inspection, claim
review, claim investigation, and response to the insured, the insurance company handles
claims in a step-by-step manner. After the operations related to loss adjustment are
finished, the claim payment procedure is the process of giving the claim compensation.
Settlement occurs right away if there is no disagreement over the amount of the claim's
compensation and both the insurer and the insured concur on it. The claim may be
delayed if there is a disagreement on the compensation.
The overall effectiveness of an insurance company's claim processing is
measured by service quality. This metric takes into account the staff's appearance, the
tools the business uses, how the staff responds to customer complaints and issues, their
capacity to win over the customer's trust and confidence, their ability to deliver the
promised service precisely, and how they show the customer care and individualized
attention.
 CHAPTER (3)
BACKGROUND STUDY OF KBZMS GENERAL INSURANCE
COMPANY LIMITED
This chapter presents the background of KBZMS General Insurance Co., Ltd.
It includes (3) sections. They are the profile of KBZMS general insurance company
limited, the claims process, and the service quality.

3.1 Profile of KBZMS General Insurance Company Limited

One of the biggest privately-owned, most diverse groups of businesses in
Myanmar was founded by U Aung Ko Win in 1994 and is known as the Kanbawza
(KBZ) Group of Companies. Its fundamental tenet is to stand up for the nation and its
citizens. More than 81,000 people work for it currently. It is regarded as the top
charitable organization in Myanmar and has received recognition on a global scale for
its CSR efforts. Leaders in the banking, finance, insurance, manufacturing, mining,
aviation, agricultural, real estate, trading, healthcare, tourism, and hospitality industries
are included in the KBZ group. (Website of KBZ Group) One of the companies in the
KBZ Group of Companies is KBZMS General Insurance Company Limited (KBZMS).
IKBZ Insurance Co., Ltd. was the name under which KBZMS was founded in
September 2012, and on June 5, 2013, the Insurance Business Supervisory Board issued
it with Insurance Business License No.001 (IBRB). On June 12th, 2013, KBZMS
performed its opening ceremony. The required minimum paid-up capital is (40) billion
kyats, or (26.4) million US dollars. (Website for KBZMS) In November 2019, IKBZ
Insurance and Mitsui Sumitomo Insurance (MSI), a major player in the Japanese
insurance market, formed a joint venture under the name KBZMS. Twenty (20) cities
are home to KBZMS's (22) branches. There are more than 720 employees working
there. Since the company's founding in 2013, KBZMS has dominated the Myanmar
general insurance market. Fire & Allied Perils, Comprehensive Motor, Marine Cargo,
Cash-in-Safe, Cash-in-Transit, Fidelity, Marine Hull, Health, Personal Accident, and
Travel insurance are among KBZMS's insurance offerings. On October 1st, 2020,
KBZMS will add Commercial Lines, which will include products for Industrial All
Risk (IAR), Construction All Risk/Erection All Risk, and Bailee's Liability Insurance.
"To improve the quality of life in Myanmar by offering the appropriate insurance
solutions for all," reads KBZMS' mission statement. the fundamental principle is
"Being kind to people and acting morally are the company's guiding principles, which
permeate every aspect of KBZMS. We are motivated by our three core values, Metta,
Thet Ti, and Virya, which stand for loving kindness, tenacity, and courage ". The core
tenets of KBZMS's commitment to providing sustainable service quality in their
business operations are: (1) meeting the needs of their clients with high-quality
services; (2) consistently pursuing operational distinction in claim handling; (3) timely
administration of accurate policies and endorsements; and (4) maintaining the integrity
of their corporate reputation through honesty. Assisting their trained team and
professional agents, KBZMS is constantly devoted to giving their customers the finest
service possible while implementing operations and corporate governance in
accordance with global standards. KBZMS has a solid track record of resolving claims
successfully and offers excellent customer contact center services and claims services
24 hours a day.

3.2 Claims Process of KBZMS General Insurance Company Limited

The claim process of KBZMS includes three parts of the process. These are the
claim reporting process, the claim handling process, and the claim payment process.

(i) Claim Reporting Process

As a first step, the insured must promptly and precisely notify the KBZMS call
center when the accident occurs. After receiving the claim information, the call center
personnel creates a record. At the notification stage, the call center employees will
inquire about the accident's circumstances and request information about the policy,
such as the name of the policyholder, the policy number, the length of the policy, the
insurance coverage, etc. The staff will request the license plate number of the car, the
policyholder's and driver's names, the accident's circumstances and its location, as well
as its time and date, while processing a motor insurance claim. The staff will need the
policyholder's name, the policy number, the risk's address, the circumstances and state
of the accident for non-motor insurance claims. Using this data, it will be possible to
determine if the risk has been insured or not, as well as whether the policyholder and
any supplemental protection have been covered. In order to accept claim notifications,
KBZMS uses multiple channels, including phone calls, text messages, emails, faxes,
letters, Viber, WhatsApp, and other social media. This service is available around-the-
clock. After receiving the claim notification from the insured, call center employees go
on to the claim verification stage..

(ii) Claim Handling Process

The call center personnel evaluates the reported claim's validity after receiving
the claim notification by consulting the underwriting department and system to confirm
that the pertinent policy was in effect at the time of the loss and that it covered the
incident that caused the loss. The claim/loss surveyor teams for motor insurance claims
and the claim handling department for non-motor insurance claims are notified to move
forward with the claim procedure if the call center staff who received the claim notice
confirmed the reported claim was covered at the time of loss. The claim processing
procedures in KBZMS are divided into sections based on the nature of the insurance
product..
(a) Motor Insurance Claim Process
The claim surveyor calls the customer to get further information about the
accident and determine whether a loss inspection is required after receiving the claim
information from the call center. The claim surveyors don't need to visit the accident
scene and conduct an inspection if the accident or damage is minor; instead, they only
ask the insured for the damaged photo and any necessary documentation. The claim
surveyors must visit the accident site as soon as possible, conduct an inspection, and
handle the matter on behalf of the insured if the accident or damage is significant. They
examine the wrecked car and complete the loss inspection form. Determine whether
the loss is the result of third-party or personal damage as well. Own Damage denotes
an accident involving their insured car, whereas Third-Party Damage denotes an
accident involving other vehicles. The claim surveyors check the car number plate,
wheel tax, driver's license, and the collision scenario and condition for Own Damage
in order to determine whether the insured has insurance or not and whether
supplementary protection has been covered or not. Claim surveyors for Third-Party
Damage examine the vehicle number plate, wheel tax, driver's license, accident
circumstances, and vehicle of the Third Party to determine whether or not the Third
Party is insured. Claim surveyors handle the claim procedure in accordance with the
Knock for Knock Agreement if it has insurance. The Knock-For-Knock Agreement
states that the respective businesses must fix their damaged cars. The claim surveyors
make this determination when the loss inspection process is complete. They notify the
insured of the rejection and provide the reason if the damage is not covered. If the loss
qualifies, they move through with the process of negotiating with the insured about the
best shop to have the damaged vehicle transported to for repairs or modifications, as
well as the logistics of doing so. There are two options for transportation: first, the
insured must tow the damaged car to the shop, and second, the insurance provider must
get in touch with the Crane Company to tow the car. Only the 100,000 Kyat towing
charge from the scene of the accident to the workshop will be covered by the insurance
carrier. The insured may select the workshop with the customer workshop or the
workshop that KBZMS has suggested to fix the damaged vehicle. The claim surveyors
transfer the damaged car to the chosen workshop in accordance with the customer's
selection. The claim surveyors ask the insured to send the maximum repair cost cap, a
hard copy of the repaired voucher, and the claim form if they choose to repair the
insured's car in-house. Because some of the insured prefer to have it repaired at an
expensive workshop and to replace expensive accessories for the damaged part of their
vehicle, the repair cost will only be in accordance with the KBZMS workshop. The
claim surveyors ask for the anticipated repair cost to the workshops and ask the insured
to complete the claim form if they choose to have their car repaired in KBZMS's
suggested workshop. They then provide the repair cost comparison to the appropriate
workshop after submitting it to the Manager. If there is a significant amount of damage,
the claim surveyors ask the manager, expert advisor, and head of the claim department
for permission before delivering a proper workshop. The claim surveyors write the
claim case and loss survey reports following the repair process. The loss survey reports
outline which component has to be altered or replaced, how much should be paid to the
insured in the event of a theft or entire loss, and how the insured should be
compensated. Finally, they forward the claim case and loss survey report to the claim
handler so that the process can go forward. The claim handler registers the claim data
case by case after receiving the claim case from the claim surveyor team and assigns it
to the appropriate claim handler based on the case. The claim handlers examine to see
if the paperwork is complete, and if not, they ask the insured to provide the missing
information. Additionally, it is necessary to confirm that the policy was in effect at the
time of the loss, that the insured's information is accurate and matches that on the
proposal form, that the peril insured against was covered by the policy, that the insured
complied with the policy's terms and conditions, etc. The claim manager must start the
process for additional investigations or legal action if they are unable to decide on a
claim, suspect it is fraudulent, and do not have all the information. The investors
determine the amount of the vehicle's damage and establish the cost of repairs during
the investigation stage. Additionally, give advice on whether to restore the damaged
car or declare it a constructive complete loss and pay the insured the car's pre-accident
worth. Following the investigation phase, the claim handler notifies the insured of the
claim amount, if the information provided by the insured was satisfied, and whether or
not the claim will be paid. Negotiations with the insured are required if the claim
amount paid to the insured is less than the amount claimed. In this case, even though
liability has been admitted, the requested sum has not satisfied the insurer. If the
negotiation does not succeed, the claim handler moves on to a different process, such
as arbitration or litigation. If the negotiations go smoothly, the claim handlers ask the
manager, the expert advisor, the head of the department, and the CEO for permission
up to the approved maximum. The claim handlers upload the claim case and payment
information into the system after gaining permission, then notify the finance
department to start the payment process..
(b) Non-Motor Claim Process
The process for filing non-motor claims comprises Fire Insurance, Cash-in-Safe
Insurance, Cash-in-Transit Insurance, Fidelity Insurance, Marine Cargo Insurance,
Marine Hull Insurance, Industrial All Risk (IAR), and Construction All Risk/Erection
All Risk (CAR / EAR) Insurance. The claim information is sent to the claim handler
directly throughout this process by the call center staff. The claim handler requested
the underwriting hand copy case from the underwriting department after receiving the
claim information from the call center. They also informed the survey & engineering
department along with the underwriting hand copy case. After receiving the claim
information from an underwriting case, the survey and engineering team conducts a
loss inspection with the claim surveyor. The loss that is damaged at the time of the
incident is evaluated by the surveyors, who contrast it with the situation prior to the
catastrophe. The insured must concur with the magnitude of the loss and accept the
surveyor's expert judgement in order to move on to the next step. The company will
need to consult external surveyors if the insured disagrees with the internal surveyor's
assessment, the degree of the loss, or the situation is outside their professional
expertise. Following the loss inspection procedure, the surveyors send the claim
handler the loss survey report together with the damaged photo. The best way to pay
the insured for the loss is suggested by surveyors in the report on the loss survey, along
with recommendations for which parts should be fixed and which should be replaced.
When the claim handler receives the loss survey report, they review the claim
information, checking to see if the policy was in effect at the time of the accident, if
the insured's information matches that on the proposal form, if the policy covers the
risk, and if the insured complies with the policy's terms and conditions. They next ask
the manager for preliminary approval of the claim. After receiving preliminary
clearance, the claim handler asks the insured to complete the claim form. Additionally,
ask for the necessary paperwork, such as a written statement of claim describing the
risk damage, a police report, a fire brigade report, a cost estimate for repairing the
building or other insured properties, etc. They check the necessary document after
getting the request from the insured and then work with the Survey and Engineering
department to determine the claim amount. When the claim amount is verified, they
create the claim case and, in accordance with the approved limit, ask the manager, the
expert advisor, the head of the department, and the CEO for approval of the claim
amount. The claim handlers notify the insured of the claim amount and the decision to
pay or reject the claim after gaining approval. If the insured does not agree to the claim
amount, talks are initiated with the insured. They ask for agreement for the payment
process if the negotiations go smoothly. Then, they upload the claim case and payment
information into the system to complete the payment procedure, and they notify the
finance department..
(c) Claim Process of Health, Critical Illness, and Personal Accident Insurance
The claim information is sent to the claim handler by the call center staff. When
the claim handler receives the claim information, they send the claim form to the
insured, inquire about the case with the underwriting division, and ask the insured for
the claim details information. They verify the policyholder details and the claim
information with the underwriting case after obtaining the claim details information
and the claim form. The claim case is prepared and given to the designated doctor to
start the investigation procedure if the claim information does not match the
underwriting case. If the claim is legitimate, the doctor says, they should ask the
approval person to approve the claim's amount. After receiving approval, the claim
manager notifies the insured of the claim amount and whether the claim will be paid or
denied. If the insured does not agree to the claim amount, talks are initiated with the
insured. If the negotiation goes smoothly, they ask the manager, expert advisor, head
of department, and chief executive (CEO) for their approval in accordance with the
payment process' approved limit. Then, they upload the claim case and payment
information into the system to complete the payment procedure, and they notify the
finance department..
(iii) Claim Payment Process
The claim payment process is started by KBZMS once the negotiating process'
activities are finished and the claim amount has been decided upon. The insurers may
choose from three ways of claim payment in order to provide claim settlements. There
are three options: replacing the damaged part, repairing it, and paying cash. The repair
and replacement procedure is what KBZMS uses for the majority of auto insurance
claims. However, KBZMS employs the cash payment option if the insured selects their
own workshop to fix their car. Additionally, the cash payment option is used when a
total loss claim is made since the claim value is high and replacement spare parts are
hard to come by. The compensation is paid by KBZMS using a cash payment method
for non-motor insurance claims. Despite having a right to reimbursement under the
terms of the insurance contract, the insured cannot get their entire amount in one lump
sum. Because the KBZMS practice includes elements like Average and
Excess/Deductibles. Average means that the insured only pays a tiny part of the entire
value at risk for the policy's premium, and any claims settlement under this policy will
take this into account and reduce the amount due proportionally. Excess or Deductibles
are financial sums that are chosen at the start of the policy and deducted from each
claim that needs to be settled. The finance department collects client and claim payment
data from the SAP system during the claim payment procedure. The finance department
verifies the necessary paperwork and payment details. The payment process can be
made if all necessary paperwork and payment details are submitted. They first ask the
Manage, Head of Department, and Chief Financial Officer (CFO) for approval in
accordance with the authorized limit. Following approval, they file the claim, transfer
the claim's proceeds to the insured, and notify the claim manager of the payment. The
claim handler registers the payment date and other information in the claim case after
receiving the claim payment information from finance, and then closes the claim case.

3.3 Service Quality of KBZMS General Insurance Company Limited

The service provided to clients and agents is subject to fierce competition in
Myanmar's general insurance industry. The largest and most rapidly expanding private
general insurance company in Myanmar is KBZMS. It keeps growing its partner
network and distribution methods. KBZMS works to provide better services to its
clients and agents in order to increase business performance and profitability as well as
to have satisfied clients. One of the key components in the insurance sector is service
quality. The degree of client satisfaction is influenced by their opinion of service
quality and confidence in the provider. To offer insurance services and products,
KBZMS has established (22) branches around Myanmar, including a main office. In
the office where customers wait, KBZMS is well-organized and has a well-decorated,
clean, cozy, and comfortable atmosphere. The personnel is well-dressed and offers the
customers' insurance services. Additionally, to offer the customer top-notch insurance
service, KBZMS makes use of aesthetically pleasing current equipment and the Core
PAS insurance system. KBZMS sells insurance products through a variety of channels,
including Direct Sale, Agency, KBZMS Partners, Bancassurance, Business to
Business, and others. The Agency channel is the most well-liked channel in the
insurance sector among these. KBZMS offers office, computer, and training services
to agents so they may be successful in the agency channel. Additionally, KBZMS offers
the service of sending trips for the Agent in accordance with their sales target. As the
banking industry advances, KBZMS works with banks to acquire their customers
through the Bancassurance channel. KBZMS leverages the online platform to offer
customers top-notch service. Because the consumer can receive current information
from the company regarding the announcement of new products, promotion strategies,
and knowledge of insurance policies, among other things, KBZMS keeps the state of
its website updated. In addition, KBZMS offers online payment options, door-to-door
service, a 24-hour call center, and One-Stop Service for the convenience of its clients.
The KBZMS personnel is well-versed in factual information regarding insurance
products, policy terms and conditions, and business procedures. When offering
insurance services to customers, the employees must also be knowledgeable, polite,
and trustworthy in order to earn their confidence and happiness. When clients purchase
insurance or services, they can properly explain to them the terms and conditions of the
insurance products and policies. Additionally, they describe how to file a claim when
an accident occurs while the insurance products are being sold. When clients have
requests, questions, concerns, or difficulties, the staff responds quickly and is willing
to work with them to find solutions.
 CHAPTER (4)
ANALYSIS OF THE EFFECT ON INFLUENCING FACTORS OF
CUSTOMER SATISFACTION
This chapter identifies the demographic characteristics of the respondents and
consumer satisfaction on the claim process and analyzes the factors influencing on
customer satisfaction. The findings present the descriptive statistics in terms of mean
and standard deviation, followed by correlation and regression analysis.

4.1 Research Design

In this study, the general insurance claims procedure at KBZMS General
Insurance Co., Ltd. was identified, and the factors affecting customer satisfaction at
KBZMS General Insurance Co., Ltd. were also examined. A sample of 330 clients with
claims in the KBZMS was chosen using the straightforward random sampling method.
In this study, both qualitative and quantitative research approaches as well as primary
and secondary data were utilised. The survey questions were crucial for the study's
methodology and had a significant impact on the analysis of customer satisfaction with
the handling of general insurance claims. Based on Yamane's Sampling Formula (n =N
/ 1+N(e)2), (330) consumers are chosen as the sample population from among (1900)
customers who received a claim in KBZMS between September 2021 and March 2022.
On the basis of the information gathered via the questionnaire, the mean values,
standard deviation, and correlation coefficient were determined. Data were analyzed
using SPSS statistical software using multiple linear regression, as stated in this article.
4.2 Reliability and Validity Test
This study used Cronbach’s Alpha to measure internal consistency or reliability
among the variables. The result of Cornbrash’s alpha coefficient was shown in Table
(4.1).
Table (4.1) Analysis Results of Construct Reliability
Variable Number of items Cronbach’s Alpha
Claim Initiation / Notification Process 6 0.784
Claim Handling Process 7 0.865
Claim Payment Process 6 0.885
Claim Service Quality 10 0.939
Customer Satisfaction 8 0.893
Source: Survey data, 2023

In this analysis, the claim initiation/notification process and claim payment

process were tested with 6 items, claim handling process was tested with 7 items, the
claim service quality was tested with 10 items, and the customer satisfaction was tested
with 8 items. According to Table (4.1), the result of Cornbrash’s Alpha showed claim
initiation/notification process was acceptable with a value of above 0.7, claim service
quality was excellent with a value above 0.9 and the rest variables were good with a
value above 0.8. Therefore, there was a good and acceptable consistency level of
valuables.

Table (4.2) Analysis Results of Construct Validity

Bartlett’s Test of Sphericity
Variable KMO Chi-Square P Value
Claim Initiation / Notification Process .820 490.602 0.000
Claim Handling Process .892 964.025 0.000
Claim Payment Process .842 1001.012 0.000
Claim Service Quality .945 2378.606 0.000
Customer Satisfaction .780 995.335 0.000
Source: Survey data, 2023
The result of KMO showed claims service quality was superb with a value of
above 0.9, customer satisfaction was good with a value of above 0.7, and the rest
variables were great with a value above 0.8. KMO and Bartlett test evaluated all
available data together. KMO value over 0.5 and a significance level for Bartlett's test
below 0.05. Therefore, there were substantial correlations in the data.

4.3 Demographic Characteristics of Respondents

The demographic characteristics include gender, age, education level,
occupation, frequency of insurance claims, and insurance service year.
Table (4.3) Demographic Profile of Respondents

Characteristic Numbers Percent

Total 330 100
Gender
Male 187 56.7
Female 143 43.3
Age
Under 25 years 20 6.1
25-30 90 27.3
31-40 110 33.3
41-50 60 18.2
51-60 30 9.1
above 60 20 6.1
Education Level
High School Pass 16 4.8
Under Graduate 16 4.8
Graduated 233 70.6
Master 50 15.2
PhD 15 4.5
Occupation
Unemployment 8 2.4
Own Business 30 9.1
Company Staff 212 64.2
Government Employee 40 12.1
Pension 40 12.1
Source: Survey Data, 2023
As shown in Table (4.3) males were the majority with a response rate of 56.7%
while the remaining 43.3% were female respondents, which means the male
respondents had more compensation claims than females. The age of respondents was
classified into six groups. It was found that most respondents were middle age between
25 and 50 years, and the response rate had 18.2 percent to 33.3 percent. This group was
the most compensation claim and the age under 25 and above 50 was the least
compensation claim, the response rate had 9.1 percent to 6.1 percent. There were five
education levels among the respondents in the sample: High School Pass, Under
Graduate, Graduated, Master, and Ph.D. The total number of respondents were
graduated, and the percentage of High School Pass and under- graduate was 4.8%,
70.6% of the total respondents was graduated, 15.2% of the total respondents was
masters and 4.5% of the respondents was Ph.D. According to the result of the
respondent’s occupations, most of the respondents were company staff. 2.4% was
unemployed, 9.1 % was own business, 64.2 % was Company Staff, and the percentage
of government employees and pension was 12.1%.

Table (4.3) Demographic Profile of Frequency of Insurance Claims and Insurance

Service
Frequency of Insurance Claims
once a year 125 37.9
twice a year 105 31.8
3 times a year 75 22.7
more than 3 times a year 25 7.6
Insurance Service
less than 1 year 44 13.3
1-3 years 46 13.9
3-5 years 105 31.8
above 5 years 135 40.9
Source: Survey Data, 2023
According to Table (4.3), most of the respondents requested the claim twice a
year. 37.9 % of respondents composed the claims once a year, 31.8 % of respondents
composed the claims twice a year, 22.7% of respondents composed the claims 3 times
a year, and 7.6% of respondents composed more than 3 times a year. 13.3% of
respondents had been customers in less than 1 year, 13.9% of respondents had been
customers in 1-3 years, 31.8% of respondents had been customers in 3-5 years and
40.9% of respondents had been customers in above 5 years. Most of the respondents
had been the insurance above 5 years. Most of the respondents had been customers of
this insurance company for above 5 years.
4.4 Descriptive Analysis on Customer Satisfaction

In this study, each of the influencing factors namely the claims

initiation/notification process and claim payment procwaswere measured with 6
statements. Claim handling process was measured with 7 statements, claim service
quality was measured with 10 statements, and customer satisfaction was measured with
8 statements. Each statement was measured on a 5-point Likert scale (1: strongly
disagree, 2: disagree, 3: neutral, 4: agree, 5: strongly agree).
Table (4.4) Mean Rating Scale
No. Score Range Mean Rating
1 1.00 -1.80 Strongly Disagree
2 1.81 – 2.60 Disagree
3 2.61 – 3.40 Neutral
4 3.41 – 4.20 Agree
5 4.21 – 5.00 Strongly Agree
Source: Survey Data, 2023
According to Table (4.4), the mean values of 5-point Likert were interpreted as
between 1.00 -1.80 was strongly disagree, between 1.81 – 2.60 was disagree, between
2.61 – 3.40 was neutral, between 3.41 – 4.20 was agree and between 4.21 – 5.00 was
strongly agree. If standard deviations are lower than 1, it means values are clustered
around the mean and are reliable. If standard deviations are more than 1, which means
the values are spread out over a wider range and are not reliable.

Customer Satisfaction on Claim Initiation/Notification

The customer perception of claim initiation/notification was very important and
the respondents described their knowledge and experience about the notify the claim.
The mean and standard deviation of each statement in claim initiation/notification
process were shown in Table (4.5).
Table (4.5) Customer Perception of Claim Initiation/Notification Process

Std.
No. Items Mean
Deviation
1 Customer has knowledge about the channel to make 4.41 .767
reporting process in KBZMS.
2 The person I contacted was knowledgeable about 4.42 .694
claims reporting.
3 Claim reporting process is simple and easy. 4.55 .638
4 It was easy to contact the insurance company to report 4.42 .698
the incident/claim
5 A customer has knowledge about claims processing by 4.44 .691
considering the situation.
6 Customer has an awareness of the terms and conditions 4.49 .672
of the insurance policy since they buy the insurance.
Overall Mean 4.45
Source: Survey Data, 2023
According to Table (4.5), “the claim reporting process is simple and easy” had
the highest mean value of 4.55. “The customer has knowledge about the channel to
make reporting process in KBZMS” had the lowest mean value of 4.41. The overall
mean value of claim initiation/notification process was 4.45. It indicated most of the
respondents strongly agree that the claim initiation/notification process did not have
many steps and was easy to make the reporting process.

Customer Satisfaction on Claim Handling Process

Customer perception of claim handling process was very vital that the
respondents examine how the claim handlers ran the claim process. The mean and
standard deviation of each statement in claim handling process was shown in Table
(4.6).
Table (4.6) Customer Perception of Claim Handling Process
No. Items Mean Std. Deviation
1 KBZMS staffs come to the accident place fast. 4.57 .631
2 KBZMS’s Loss/Claim Survey team conducts 4.42 .676
negotiations between clients and third parties.
3 The initial response either to approve or request 4.30 .705
additional information was sped up.
4 KBZMS informed me of the detail of the claim 4.42 .690
process and the cost associated with the repair work.
5 The panel workshops used were preferred by the 4.52 .681
client or acceptable to the client. (e.g. motor)
6 There was a mechanism to file any complaints or 4.54 .629
disputes during the claim process. KBZMS process
promptly and fairly for that complaints.
7 The negotiation process to settle the claim was 4.57 .612
quick
Overall Mean 4.47
Source: Survey data, 2023
According to Table (4.6), “KBZMS staffs come to the accident place fast” and
“the negotiation process to settle the claim was quick”, these were the highest mean
values with 4.57. “The initial response either to approve or request additional
information was sped up” was the lowest mean value with 4.30. The overall mean value
of claim handling process was 4.47. It indicated most of the respondents strongly agree
that the claims surveyor went to the accident place faster as well as possible when
receiving the claim notification from the insured and the company made the faster
decision and negotiation process to pay the claim quickly.

Customer Perception of Claim Payment Process

Customer perception of claim payment process was very vital that the
respondents examine how to provide the compensation. The mean and standard
deviation of each statement in claim payment process was shown in Table (4.7).
Table (4.7) Customer Perception of Claim Payment Process
Std.
No. Items Mean
Deviation
1 KBZMS provides the claim settlement in a timely 4.60 .607
manner.
2 KBZMS provides payment through online 4.49 .615
payment services.
3 KBZMS transfers the amount of the claim to the 4.40 .669
customer with payment details.
4 KBZMS provides claim payment as per your 4.44 .696
understanding and the cover you have.
5 Insured are compulsory to visit the head office for 4.45 .723
claim payment
6 KBZMS doesn't request the additional document 4.61 .645
in the payment process
Overall Mean 4.50
Source: Survey data, 2023
According to Table (4.7), “KBZMS doesn't request additional document in the
payment process” had the highest mean value of 4.61. “KBZMS transfers the amount
of the claim to the customer with payment details” had the lowest mean value of 4.40.
The overall mean value of the claim payment process was 4.50. It indicated most of the
respondents strongly agree that the claim payment process was faster because KBZMS
requested all required documents at the initial response stage so there was no delay
when paying the compensation to the customers.

Assessment of Service Quality on Claim Process

This part of the study presents assessment of service quality on claim process
by using the SERVQUAL model. The mean and standard deviation of each statement
of the service quality were shown in Table (4.8).
Table (4.8) Assessment of Service Quality on Claim Process
No. Items Mean Std. Deviation
1 The KBZMS has modern-looking equipment 4.07 .968
The employees of front line are well groomed 4.18 .851
2
and neat appearing.
When the KBZMS promises to do something by 4.12 .905
3
a certain time, it does so.
When you have a problem, the KBZMS shows a 4.14 .863
4
sincere interest in solving it.
Employees in the KBZMS give prompt service 4.25 .847
5
to you.
Employees in the KBZMS are always willing to 4.27 .837
6
help you.
Employees of KBZMS have the knowledge to 4.21 .816
7
answer the question.
Employees of the KBZMS are consistently 4.15 .802
8
courteous to you.
Employees of the KBZMS are able to 4.10 .837
9
communicate effectively
The KBZMS has operating hours convenient to 4.16 .875
10
all its customers.
Overall Mean 4.15
Source: Survey data, 2023
According to Table (4.8), “Employees in the KBZMS are always willing to
help” had the highest mean value of 4.27. “The KBZMS had modern-looking
equipment” had the lowest mean value of 4.07. The overall mean value of the service
quality was 4.15. It indicated most of the respondents agree to the employee of KBZMS
help and provide prompt service to solve the problem and complaints of the customers.
Overall Mean Values of Variable
Overall mean values of independent variables were shown in Table (4.9).

Table (4.9) Overall Mean values of Variable

No. Factors Overall Mean
1 Claim Initiation/Notification 4.46

2 Claim Handling 4.48

3 Claim Payment 4.50

4 Claim Service Quality 4.15

Source: SPSS Output Data (2023)

According to Table (4.9), the largest mean value of the independent variables
was claim payment with a score of 4.50, and the lowest value of the independent
variables was claim service quality with a score of 4.15. Overall mean values of
variable were above 4.0. It was indicated the four independent variables strongly affect
on customer satisfaction with the general insurance claims process.

Assessment of the Customer Satisfaction On Claim Process

Customer Perception of customer satisfaction is very important that the
customers examine for the whole claim process. Moreover, the customers observed the
services provided by the staff and the relationship with the staff. The mean and standard
deviation of each statement of customer satisfaction were shown in Table (4.10).
Table (4.10) Assessment of the Customer Satisfaction On Claim Process
Std.
No. Items Mean
Deviation
1 Claim reporting process is smooth. 4.62 .607
2 24 hours contact is convenient. 4.59 .614
The claim handling process provided by KBZMS is 4.63 .631
3
effective compared to other insurance companies.
KBZMS has the standard operating procedure 4.77 .469
4
regarding claims handling.
5 The claims payment process is fast. 4.69 .584
6 KBZMS provides the flexible payment schedule 4.21 .977
KBZMS has a prominent reputation for claim 4.28 .950
7
settlement service quality

8 Employees of KBZMS are efficient and friendly. 4.14 .897

Overall Mean 4.66

Source: SPSS Output Data (2023)
According to Table (4.10), the highest mean value of customer satisfaction was
“The claims payment process is fast.” with the score of 4.50 and the lowest mean value
of customer satisfaction was “Employees of KBZMS are efficient and friendly” with
the score of 4.14. The overall mean value of customer satisfaction was 4.66, which
indicated the customers were satisfied with KBZMS because the claim payment
process was faster and the claim process was standardized, and the customer
relationship with staff was good enough.

4.5 Analysis on the Influencing Factors on Customer Satisfaction

Pearson correlation was calculated to analyze the relationship between the
dependent variable "customer satisfaction" and the independent variables "claim
initiation/notification process, claim handling process, claim payment process, and
claim service quality" in Table (4.11).
Table (4.11) Correlation of Influencing Factors on Customer Satisfaction
Correlation
No. Factors P-Value
Coefficient
1 Claim Initiation/Notification .619** 0.000
2 Claim Handling .657** 0.000
3 Claim Payment .628** 0.000
4 Claim Service Quality .063 0.000
** Correlation is significant at the 0.01 level (2-tailed)
*. Correlation is significant at the 0.05 level (2-tailed).
Source: SPSS Output Data (2023)

All of the independent factors showed correlation with the dependent variable,
as shown in Table 4.11 Customer satisfaction was correlated positively with the claim
initiation/notification process (r = 0.619), negatively with the claim handling process
(r = 0.657), positively with the claim payment process (r = 0.628), and negatively with
the claim service quality (r = 0.063). Claim handling procedures and satisfaction had
the strongest correlations, in that order. With a lesser level of significance of 0.063, the
final variable, "claim service quality," revealed a marginally positive link with
satisfaction. To determine the link between the dependent variable and the independent
variables (claim initiation/notification, claim handling, claim payment, and claim
service quality), a regression analysis was conducted (customer satisfaction). Table
displayed the findings of the regression analysis and the F statistics value (4.12).
Table (4.12) Regression Result of Independent Variables and Customer
Satisfaction
Unstandardized Standardized
Independent Coefficients Coefficients
t Sig VIF
Factors Std.
B Beta
Error
Constant 1.450 .220 6.601 .001
Claim Initiation/ .208*** .076 .200 2.728 .007 3.271
Notification
Claim Handling .360*** .084 .352 4.290 .001 4.094
Claim Payment .167** .078 .175 2.140 .033 4.067
Claim Service -.020 .029 -.028 -.687 .492 1.023
Quality
R Square .464
Adjusted R Square .457
F value 70.355***

Notes: *** Significant at 1% level, ** Significant at 5% level * Significant at 10% level

Dependent Variable: Customers’ satisfaction
Source: SPSS Output Data (2023)
The independent variables (claim initiation/notification process, claim handling
process, claim payment process, and claim service quality) accounted for 45.7% of the
effect on the dependent value (customer satisfaction), according to Table 4.12, where
the value of R2 is 0.464 and the adjusted R2 is 0.457. The dependent variable and
independent variable were clearly associated by a large amount, as evidenced by the F-
value of 38.914. The VIF value for claim initiation/notification, claim management,
claim payment, and claim service quality was 3.271, 4.094, 4.067, and 1.023
respectively. All of the VIF values fell between 1 and 5, indicating a modest correlation
between the variables. Customer satisfaction had a 0.208 correlation with the claim
initiation/notification process, a 0.360 correlation with claim management, and a 0.167
correlation with claim payout. These connections to client satisfaction were important
and beneficial. Customer satisfaction was most significantly impacted by the claim
handling process. However, there was no substantial impact on customer satisfaction
due to the negative correlation between claim service quality and contentment (-0.20).
 CHAPTER (5)
CONCLUSION

This chapter is composed of three parts. Firstly, it presents the findings and
discussions based on the survey data. Secondly, suggestions and recommendations
based on the findings are presented. Finally, it states the need for further study.

5.1 Findings and Discussions

This study's primary objective was to investigate the elements that influence customer
happiness at KBZMS General Insurance Co., Ltd. and assess how those factors
contribute to overall customer satisfaction. In order to develop a well-structured that
has demonstrated in Appendix 1 of the questionnaire data was collected from 330
customers of KBZMS General Insurance Co., Ltd. who are getting claims. According
to the findings of the study, which were derived from correlation analysis and reliability
test analysis, it was found that, with the exception of service quality, the claim
initiation/notification process, claim handling process, and claim payment process all
had a positive influence on customer satisfaction.
A person's gender, age range, education level, occupation, the number of times they
have filed a claim, and the length of time they have been insured are all examples of
demographic characteristics. The study found that female respondents made up 43.3%
of those who got the claim, whereas male respondents made up 56.7% of those who
participated in the study. As a result, the percentage of male respondents is significantly
higher than the percentage of female respondents. This is due to the fact that male
respondents are more engaged in providing an answer to the question than female
respondents.
When it comes to the respondents of ages question, the age group of 31-40 years old
has the highest percentage of respondents, which is 33.3 percent. The age group of 25-
30 years old has the second highest percentage, with 27.3 percent, followed by the age
group of 41-50 years old with 18.2 percent, the age group of 51-60 years old with 9.1
percent, and the under-25 and over-65 age groups with 6.1 and 6.1 percent,
respectively. As a direct result of this, the average age of KBZMS users is quite young
and full of vitality. According to the findings, the majority of clients whose claims are
approved have ages ranging from 31 to 40 years old, and these are people who are full
of vitality.
When it comes to education level, the majority of respondents have at least a bachelor's
degree, making up 70.6 percent of the total, making them the most educated group of
respondents. The master's degree holders make up 15.2 percent of the total, making
them the second most educated group. The percentage of individuals holding a Ph.D.
is 4.5 percent, and the percentage of those holding a high school diploma or less is 4.8
percent. Therefore, it is safe to conclude that the majority of customers who acquire the
claim are persons who are literate.
When it comes to the occupation, the majority of respondents who work for the
corporation account for 64.2 percent of the total. The remaining 12.1 percent consists
of people who are employed by the government or receive a pension, 9.1 percent run
their own businesses, and 2.4 percent work for other people. According to the findings,
the majority of the customers that get the claim are employees of the company.
Once a year has the highest frequency percentage of claims, with 37.9 percent, followed
by twice a year, which has the second highest frequency percentage of claims, with
31.8 percent, followed by three times a year, which has the third highest frequency
percentage of claims, with 22.7 percent, and more than three times a year has the
seventh highest frequency percentage of claims. As a direct consequence of this, the
vast majority of clients only filed their claims once every year.
The percentage of insurance service providers with more than five years of experience
is the highest at 40.9 percent. This is followed by those with 3-5 years of experience at
31.8 percent, 1-3 years of experience at 13.9 percent, and less than one year of
experience at 13.3 percent. As a direct consequence of this, the vast majority of the
consumers are dedicated customers.
When it comes to the reliability and validity dimension, the reliability analysis
(Cronbach's Alpha) demonstrated that the claim initiation/notification process, claim
handling process, claim payment process, service quality, and customer satisfaction all
have a good and acceptable consistency level of valuables. This is due to the fact that
the "Cronbach's Alpha" value is greater than 0.7. Because the KMO value is greater
than 0.5 and the significance level for the Bartlett's test of Sphericity test is less than
0.05, the KMO and the Bartlett's test of sphericity both agree that there is a considerable
correlation between all of the variables and the data.
Because their mean values are all higher than 4.0, the claim initiation/notification
process, claim handling process, claim payment process, and service quality all have a
significant impact on customer satisfaction in the claims process. This is indicated by
the fact that the independent variables all have mean values that are greater than 4.0.
The overall mean value of customer satisfaction was 4.66, which indicates that
customers were pleased with KBZMS. Customers were satisfied with KBZMS because
the process of claim payment was streamlined and more uniform, and the customer
interaction with staff was satisfactory. The findings of the analysis of correlation
coefficients indicate that the claim initiation/notification process, the claim handling
process , the claim payment process , and service quality all have a significant positive
association with one another. Except for claim service quality, the claims
Initiation/notification procedure, the claims Handling process, and the claim Payment
process all have a correlation with customer satisfaction in the claim process. The
manner in which insurance claims are processed has a significant bearing on levels of
contentment. This indicates that the procedure of handling claims is necessary if
KBZMS General Insurance Co., Ltd. is to be satisfied with its claims process. The
findings of the regression analysis indicate that there is a positive connection between
the processes of customer satisfaction and the claim initiation/notification process, the
claim handling process, and the claim payment process. However, the results also
reveal that service quality is not having a substantial impact on customer satisfaction.

5.2 Suggestions and Recommendations

It is generally agreed that the procedure for filing claims is one of the most
important aspects of any given insurance. The manner in which insurance claims are
handled is one facet of the business that can have an effect on an insurance provider's
reputation. Claims have to be settled as quickly and fairly as possible in order to win
the consumers' trust and maintain their loyalty. This study demonstrates how the claim
process influences the level of customer satisfaction experienced by policyholders of
KBZMS General Insurance Company, Ltd. To ensure that the needs of the customers
are met, it is necessary to carefully record each piece of feedback received from
customers and to take steps to address any deficiencies caused by KBZMS's claims
processing procedures. In order for the underwriting and claims personnel at KBZMS
to have a proper understanding of the sensitive nature of claims as well as their
significance to the level of customer satisfaction achieved in the insurance business,
adequate training is required. To reduce turnaround times and maximize efficiency,
KBZMS should make investments in the digitalization of information-intensive
activities. After a fair period of time has passed since the notification of the claim's
receipt, KBZMS should provide an update about the acceptance or rejection of the
claim. The claim personnel at KBZMS ought to be encouraged to participate in
continual training, either internal or external, in order for the company to meet the
necessary requirements for improved claim services and procedures. It is recommended
that KBZMS conduct claims satisfaction studies on a regular basis. This would provide
them with up-to-date information regarding the level of client satisfaction, which in
turn would assist them in developing a more effective strategy for claims settlement.
5.3 Needs for Further Studies
The scope of this study focuses on the elements that have an influence on the
degree to which customers are satisfied with the claims process offered by KBZMS
General Insurance Co., Ltd. This research will only look at 330 clients who live in
Yangon, but they will still file their claim in the KBZMS. This investigation was
conducted on a relatively small scale; therefore, more research should evaluate the
entire country of Myanmar in order to gather data that is more accurate. The research
had to be rushed because there was only so much time available. Because shifts in
consumer usage over time cannot be measured, the word count for the thesis is
constrained by the date it is due. In subsequent research, consideration ought to also be
given to the various additional external aspects. This inquiry was only concerned with
the process of filing claims; it did not look into other processes, such as the
underwriting process or the distribution procedure for insurance products.
Consequently, other variables and factors can be chosen and evaluated at a later time.
More research is required in order to keep track of the progress that has been made.
Due to the fact that customers' expectations vary depending on the circumstances, it is
possible that this test will be administered in a different manner in the future.
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 APPENDIX - 1
Survey Questionnaire
Dear respondent,
This survey questionnaire is to use only for the research paper “CUSTOMER
SATISFACTION OF GENERAL INSURANCE CLAIMS PROCESS IN KBZMS
GENERAL INSURANCE COMPANY LIMITED” to submit as a partial fulfillment
towards the degree of Master of Banking and Finance (MBF). This study is for the
Yangon University of Economics. Your responses to the questionnaire will be entered
directly into a database and treated confidentially. Your participation in this study will
be highly appreciated and thank you.

Your sincerely,
SU SU KYI
venus.sskyi@gmail.com
09445669938

Please answer by the person who received the claim compensation and choose only
one answer by marking.

I. Customer’s Demographic Information

1. Gender

Male Female

2. Age (Years)

Under 25 Years 25-30 Years 31-40 Years

41-50 Years 51-60 Years Above 60

3. Education Level
High School Pass Under Graduate Graduated

Master Ph.D.
4. Occupation

Unemployment Own Business Company Staff

Government Employee Pension

5. How often do you claim insurance within a year?

Once a year Twice a year Three Times a year

More than three times within a year

6. How long have you been a customer of this Insurance company?

Less than a year 1 – 3 Years 3-5 Years

Above 5 Years
II. Customer Perception of Claim Initiation/Notification process
1. Strongly Disagree, 2. Disagree, 3. Neutral, 4. Agree, 5. Strongly Agree
No. Particulars 1 2 3 4 5
1 Customer has knowledge about the
channel to make reporting process in
KBZMS.
2 The person I contacted was
knowledgeable about claims
reporting.
3 Claim reporting process is simple and
easy.
4 It was easy to contact the insurance
company to report the incident/claim
5 A customer has knowledge about
claims processing by considering the
situation.
6 Customer has an awareness of the
terms and conditions of the insurance
policy since they buy the insurance.
III. Customer Perception of Claim Handling Process
1. Strongly Disagree, 2. Disagree, 3. Neutral, 4. Agree, 5. Strongly Agree

No. Particulars 1 2 3 4 5
1 KBZMS staffs come to the accident
place fast.
2 KBZMS’s Loss/Claim Survey team
conducts negotiations between clients
and third parties.
3 The initial response either to approve
or request additional information was
sped up.
4 KBZMS informed me of the detail of
the claim process and the cost
associated with the repair work.
5 The panel workshops used were
preferred by the client or acceptable
to the client. (e.g motor)
6 There was a mechanism to file any
complaints or disputes during the
claim process. KBZMS process
promptly and fairly for that
complaints.
7 The negotiation process to settle the
claim was quick
IV. Customer Perception of Claim Payment Process
1. Strongly Disagree, 2. Disagree, 3. Neutral, 4. Agree, 5. Strongly Agree

No. Particulars 1 2 3 4 5
1 KBZMS provides the claim
settlement in a timely manner.
2 KBZMS provides payment through
online payment services.
3 KBZMS transfers the amount of the
claim to the customer with payment
details.
4 KBZMS provides claim payment as
per your understanding and the cover
you have.
5 Insured are compulsory to visit the
head office for claim payment
6 KBZMS doesn't request the additional
document in the payment process
V. Assessment of the Service Quality on Claim Process
1. Strongly Disagree, 2. Disagree, 3. Neutral, 4. Agree, 5. Strongly Agree

No. Particulars 1 2 3 4 5
1 The KBZMS has modern-looking
equipment
2 The employees of front line are well
groomed and neat appearing.
3 When the KBZMS promises to do
something by a certain time, it does
so.
4 When you have a problem, the
KBZMS shows a sincere interest in
solving it.
5 Employees in the KBZMS give
prompt service to you.
6 Employees in the KBZMS are
always willing to help you.
7 Employees of the KBZMS have the
knowledge to answer the question.
8 Employees of the KBZMS are
consistently courteous to you.
9 Employees of the KBZMS are able
to communicate effectively
10 The KBZMS has operating hours
convenient to all its customers
VI. Assessment of the Customer Satisfaction on Claim Process
1. Strongly Disagree, 2. Disagree, 3. Neutral, 4. Agree, 5. Strongly Agree

No. Particulars 1 2 3 4 5
1 Claim reporting process is smooth.
2 24 hours contact is convenient.
3 The claim handling process provided
by KBZMS is effective compared to
other insurance companies.
4 KBZMS has the standard operating
procedure regarding claims handling.
5 The claims payment process is fast.

6 KBZMS provides the flexible

payment schedule
7 KBZMS has a prominent reputation
for claim settlement service quality
8 Employees of KBZMS are efficient
and friendly.

Many thanks your valuable time!!!

 APPENDIX - 2
SPSS OUTPUT

(a) Frequency
Gender
Cumulative
Frequency Percent Valid Percent Percent
Valid Male 187 56.7 56.7 56.7
Female 143 43.3 43.3 100.0
Total 330 100.0 100.0

Age
Cumulative
Frequency Percent Valid Percent Percent
Valid Under 25 yrs 20 6.1 6.1 6.1

25-30 90 27.3 27.3 33.3

31-40 110 33.3 33.3 66.7
41-50 60 18.2 18.2 84.8
51-60 30 9.1 9.1 93.9
above 60yrs 20 6.1 6.1 100.0

Total 330 100.0 100.0

Education
Cumulative
Frequency Percent Valid Percent Percent
Valid High School Pass 16 4.8 4.8 4.8

Under Graduate 16 4.8 4.8 9.7

Graduated 233 70.6 70.6 80.3
Master 50 15.2 15.2 95.5
PhD 15 4.5 4.5 100.0
Total 330 100.0 100.0
 Occupation

Cumulative
Frequency Percent Valid Percent Percent
Valid Unemployment 8 2.4 2.4 2.4
Own Business 30 9.1 9.1 11.5
Company Staff 212 64.2 64.2 75.8
Government Employee 40 12.1 12.1 87.9

Pension 40 12.1 12.1 100.0

Total 330 100.0 100.0