An Institutional–Policy Analysis of Customer Satisfaction with Emphasis on Iran’s Experience and Global Trends

Abstract

The insurance industry occupies a strategic position at the intersection of financial markets, social welfare policy, and public regulation. Despite its critical role in risk management and economic stability, the development of insurance systems has often been evaluated primarily through quantitative indicators such as premium growth and market penetration. This article argues that such an approach provides an incomplete and potentially misleading assessment of insurance performance, particularly when persistent customer dissatisfaction coexists with apparent market expansion. Adopting an institutional–policy perspective, the study conceptualizes customer satisfaction as a core indicator of policy effectiveness rather than a secondary market outcome or a purely behavioral variable. Using a qualitative, comparative analytical framework, the article examines how insurance policies and institutional arrangements shape customer satisfaction outcomes, with a particular focus on the Iranian insurance industry in comparison with global regulatory trends. The analysis demonstrates that many insurance systems worldwide have gradually shifted from solvency-centered regulation toward consumer-centered governance models that institutionalize transparency, complaint resolution mechanisms, and qualitative performance indicators. In contrast, the Iranian insurance sector remains largely anchored in a quantitatively oriented policy logic, where growth in firms and premium volumes has not been matched by improvements in service quality, claims settlement, or dispute resolution. The findings reveal that persistent customer dissatisfaction in Iran is best understood as a symptom of policy and institutional pathologies, including weak enforcement, limited regulatory accountability, and an overreliance on numerical performance metrics. The article concludes that quantitative expansion without parallel qualitative reform fails to enhance satisfaction and may undermine the social welfare function of insurance. By reframing customer satisfaction as a policy-relevant outcome embedded in institutional design, the study contributes to a deeper understanding of insurance governance and offers a foundation for rethinking insurance policymaking in ways that align market development with trust, legitimacy, and long-term sustainability.