Evaluation Of Service Quality In Insurance Sector: AHP and TOPSIS Method

Abstract

Purpose – In today's world where competition is intensifying and reaching global dimensions, insurance companies must continuously improve service quality to enhance customer satisfaction and gain a competitive advantage. Generally, service quality denotes the overall quality of service provided by a firm to its customers, reflecting its suitability for intended use and the level of customer satisfaction. There are various methods for measuring service quality. Therefore, the aim of this study, after considering all these aspects, is to evaluate service quality in the insurance sector using the Analytic Hierarchy Process (AHP) and Technique for Order Preference by Similarity to Ideal Solutions (TOPSIS) methods. Methodology – In this study, AHP and TOPSIS methods were employed to assess service quality in the insurance sector. These methods are mathematical and analytical approaches commonly used in multi-criteria decision-making processes and are also frequently utilized for evaluating service quality. Findings – According to the results of the AHP method used in the assessment of service quality in the insurance sector, the most important main criteria affecting service quality are, in order, reliability of the company, physical attributes, responsiveness to customers, and accessibility of service. The ranking of service quality for the four insurance companies included in the analysis is determined as D Insurance, C Insurance, A Insurance, and B Insurance, respectively. In the application of the TOPSIS method, the data obtained from the AHP method were used, and the ranking of service quality for the included firms was found to be the same as that determined by the AHP method. Thus, it is concluded that the methods used and the individuals filling out the survey are consistent. Discussion – AHP and TOPSIS methods can provide valuable guidance to decision-makers in evaluating the service quality of insurance companies. By using the AHP method, insurance companies can determine the importance levels of different factors affecting service quality and prioritize these factors. For instance, factors such as company reliability, physical attributes, responsiveness to customers, and accessibility of service can be prioritized to help firms make strategic decisions. Additionally, by evaluating the results of sub-factors among alternatives, insurance companies can decide which sub-criteria to invest in.