Abstract:
This study examines the influence of service reliability on customer satisfaction in the insurance
industry in Kenya. The study was anchored on the Assimilation Contrast Theory and employed a
descriptive research design. Primary data was collected using a structured self-administered
questionnaire. Data analysis was conducted using descriptive statistics where the mean and standard
deviation were determined. Data were analyzed in two levels, the customer level, and the entity level.
The study employed the linear mixed effect models of structural equation modeling (SEM) considering
the multi-level structure of the data collected. Results were presented in form of tables and path
diagrams for the structural equation models. Service reliability was found to have a statistically
significant influence on customer satisfaction (? =0.840, p-value= 0.027). The study found that there
was a variation of levels of customer satisfaction across entities but this was not attributed to service
reliability. The conclusion made was that service reliability significantly influenced customer
satisfaction in the insurance industry in Kenya at the customer level but did not significantly influence
the variations of customer satisfaction between the insurance companies.
