Abstract The objective of this study was to identify the effect of the quality of the relationship between the insurance companies and the customers on the Competitive Capability of the Libyan insurance companies and to identify the dimensions of the quality of the relationship more influential in the Competitive Capability of the companies under study. The aim of this study is to know the effect of demographic variables on The study sample of the variables of relationship quality and Competitive Capability . The researcher identified the study population in the customers of the Libyan insurance companies as well as the sample size of the study (384) single and the response rate of the vocabulary of the sample of the study was high, a number of (342) questionnaire was retrieved. The researcher used a set of statistical tests based on the spps program in the introduction and processing of preliminary data. The researcher reached a number of results, the most 2 important of which is that the Libyan insurance companies in the study are aware of the importance of the quality of the relationship between them and the customers and their role in raising the Competitive Capability of the insurance companies in Libya. And that there is a significant relationship between the quality of the relationship of insurance companies and customers and Competitive Capability For the insurance companies where the correlation coefficient was 0.72, and that there are no significant differences in the variables of gender, age and scientific qualification in the realization of the variables of the study, namely the quality of the relationship (confidence, satisfaction, commitment, communication) and the variable Competitive Capability (low cost, excellence, rapid response, continuous improvement) There are significant differences due to the income variable. And that the Libyan insurance companies do not pay sufficient attention to Competitive Capability , although it focuses on the rapid response to customers. And that the Libyan insurance companies pay great attention to gaining the trust of their customers, but customers are not sure about the interest of insurance companies in the safety and accuracy of dealing with customers, and that the customers of Libyan insurance companies are not sure of their commitment to maintain relations with insurance companies that deal with them, And that the customers of the Libyan insurance companies are not sure of the company's interest in communications and use the latest technology, but they are sure the validity and reliability of informationobtainedfromtheinsurance companies of Libyan