The purpose of this study is to examine/know the effect of brand image on customer satisfaction and loyalty at Ethiopian Insurance Corporation and three private (Awash Insurance Company, Nile Insurance Company, and Nyala Insurance Company) in Bahir Dar City customers. The study tried to explain the relationship between brand image and customer satisfaction and loyalty, the effect of brand image on customer satisfaction, and the mediating effect of customer satisfaction in brand image-customer loyalty relationship. Brand image benefits (i.e. functional, experiential and symbolic) are used as independent variables and customer satisfaction and customer loyalty as dependent variables. As a methodology quantitative research approach, primary and secondary data collection method were used. Self-administered questioners which contain demographic questions and the variables measured by Likert five-point scale was used to collect data from the respondents. Correlation analysis used to analyze the relationship between the variables and multiple regression analysis is performed by using SPSS to examine the effect of brand image on customer satisfaction and loyalty. The results showed that brand image benefits and customer satisfaction are positively correlated, and customer satisfaction and customer loyalty are also significantly affected by brand image benefits with different degrees. Moreover, the mediating effect of customer satisfaction in relationship to brand image benefits - customer loyalty is found partially but significant. Based on this the researcher conclude that there is positive relationship between brand image and customer satisfaction, and customer loyalty, subsequently the companies are recommended to work on the building of brand image to increase their market share by successful achieving customer satisfaction and loyalty.