The Impact of Covid-19 on Customer Trust in The Life Insurance Industry

EasyChair Preprint 4039

Abstract

The Covid-19 pandemic really had become a multidimensional crisis that hit various sectors, including the life insurance industry. This happened because the Covid-19 pandemic made people lose income so there was no purchasing power. But life insurance should be the first choice of society, especially since there is a pandemic, public awareness of the importance of protection will increase. Increased public awareness is a positive signal improving public confidence in life insurance products. Brand trust in life insurance can be influenced by several factors including service quality, customer value, and customer satisfaction. This research aimed to determine the effect of service quality and customer value on brand trust in life insurance companies. The subjects in this research were customers who had an active life insurance policy at life assurance companies. The sampling technique was purposive sampling, generating 250 respondents. This research used quantitative methods. Data collection was carried out by distributing questionnaires using a 5-point Likert scale, with 220 total valid responses. The data analysis method used in this study was Structural Equation Modeling (SEM) using Amos software version 24. The results showed that service quality had a positive and significant effect on customer satisfaction, customer value had a positive and significant effect on customer satisfaction, customer satisfaction had a positive and significant effect on brand trust, service quality had a positive and significant effect on brand trust, customer value had a positive and significant effect on brand trust.

Keyphrases: Brand Trust, customer satisfaction, customer value, life insurance, service quality

@booklet{EasyChair:4039,
  author    = {Nina Tarja Halonen and Mohamad Rizan and Usep Suhud},
  title     = {The Impact of Covid-19 on Customer Trust in The Life Insurance Industry},
  howpublished = {EasyChair Preprint 4039},
  year      = {EasyChair, 2020}}