In this paper correlation of competitiveness and service quality are analyzed in theoretical and practical regard. It is emphasized that competitiveness might be evaluated according to different levels and formats. When preparing this paper scientific sources were analyzed and summarized, organizations were evaluated employing the methods of competitive profile analysis and surveying. Total of 316 Lithuanian insurance companies’ clients from various regions and towns of the country were surveyed. During the evaluation of the organizations direct and indirect factors influencing competitiveness were accentuated. Factors determining quality of service were also evaluated. Results of the research confirmed the hypothesis that competitiveness of service providing companies is mostly determined by the factor of service quality. Correlation between service quality and competitiveness of service providing companies was determined.