Communication relational outcomes in the insurance industry

Purpose The purpose of this paper is to understand the role that communication plays in the insurance industry, as well as its relational outcomes. Design/methodology/approach This investigation proposes a theoretical model tested using structural equation modelling. A questionnaire survey was developed to explore the relationships among communication, reputation, trust, commitment, loyalty and word-of-mouth (WOM). For this study, 744 valid questionnaires were collected from a sample of Portuguese car insurance holders. Findings The results show that communication directly influences reputation, trust and commitment. Communication also indirectly influences loyalty through reputation, trust, and commitment and communication indirectly influences WOM via trust and commitment. In turn, reputation influences trust and trust impact on relational commitment. Finally, loyalty influences WOM. Originality/value This investigation examines the mediating role of reputation, trust and relational commitment in the relationship among communication and loyalty and WOM, in a relational perspective. It fills a gap in the literature by exploring the importance of communication in the insurance industry. Thus, this study will be useful to decision makers in the insurance industry seeking to improve their insurance holders–insurance companies relationships.