This study attempts to emphasize the rising importance of customer retention, and how it isrnaffected by Service Quality. In the Service Quality model, the five identified criteria calledrnService Dimensions influencing customer retention through customers' perceptions of servicernare, (1) Assurance, (2) Tangibles, (3) Responsiveness, (4) Empathy and (5) Reliability.rnCustomers typically use these criteria to judge the quality of service they receive. Demonstratingrnthe relationship between these five service dimensions and customer retention at the EthiopianrnInsurance Corporation, is the focal purpose of this study.rnAccordingly, sample for the study consisted of 254 customers from the Ethiopian InsurancernCorporation's Southern Addis District. Data were collected with the help of questionnaires andrnanalyzed using the Statistical Package for the Social Science (SPSS) version 20; servicerndimensions being the study's independent variables, and Customer Retention, the dependentrnvariable. The results of the study indicated that all Service Dimensions (Tangibles, Assurance,rnResponsiveness, Empathy and Reliability) positively and statistically affected customerrnretention.rnThe various identified components of each of the Service Dimensions that directly affectrnCustomer Retention, do not seem to be given the due attention they deserve by the EIC'srnmanagement at all levels of the Corporation. This study therefore, recommends that thernCorporation's management give this issue its exclusive attention, so as to ensure much improvedrnprofit levels through improved performances