Automobile insurance : Prediction of the act of cancellation initiated by policyholders and analysis of the impact of the items making up the determinants of unsubscribing on their behavior at the end of the term.

Abstract

Almost all customer research has tended to focus on the concept of loyalty and loyal customers rather than on the drivers of change in service providers. Currently, service providers are trying to attract and retain customers through a variety of processes. These maneuvers come in response to the circumstantial requirements of the organizations' environment, such as high intensity of competition, low profit margins, similarity of services offered, technical and technological advances, etc. The importance of customer loyalty on the part of suppliers in the context of providers' profitability is defended by the work of Rust Roland T. and Anthony J. Zahorik (1993), Storbacka Kaj Tore Strandvik, and Christian Grönroos (1998), where they summarize that it is more profitable to collaborate with regular and loyal customers than to acquire new ones.

On the other hand, a prospect's loyalty does not prevent him from terminating his relationship with his regular supplier. In such cases, it makes more sense to understand the reasons why prospects choose to switch suppliers, or in other words, to explore the reasons for dissatisfaction leading to their switching. In this vein, our article aims to predicting the act of the termination of auto insurance contracts at maturity initiated by the insured, and analyze the impact of an assortment of unsubscribing drivers on his decision to terminate his relationship with his current insurer.