Automobile insurance - analysis of the impact of switching determinants on the behavior of policyholders at the time of subscription of insurance contracts at the term of the contract

Abstract

The success of organizations depends not only on customer loyalty, but also on preventing customer attrition. However, little research has been done on the termination of the relationship between the firm and its clients. In other words, a better understanding of the nature, steps and factors involved in the termination process will make it easier to prevent and prevent termination while trying to recover lost clients and attract new prospects. By means of this study, we try to detail, through a literature review, the "determinants of churn" negatively impacting the relationship between companies and their customer portfolio, and complete the work with an empirical study in the automobile insurance sector describing the influence of these cessation factors on the insured’s act of commutation.

The rate of termination, measured by the number of defecting customers relative to the total number of a company’s customers in a given period, appears to be a major concern for companies that are primarily service-oriented. The service activities of these organizations develop in close interdependence with the environment that imposes constraints on them. The internal structures of the latter, in order to cope with uncertainties, adapt to the types and conditions of the environment, which is neither static nor homogeneous. According to R. De Bruecker (1995), "the business environment is defined in relation to everything outside it : technology, the nature of the products, customers and competitors, other organizations, the political and economic climate, etc.". "In other words, it is subject to numerous constraints from its environment that it has absolutely no control over. J. R. Edighoffer (1998) notes that the objective of all companies "is to reduce this uncertainty; consequently, it is necessary for them to analyze and understand their environment ". A gradual deterioration in the services offered, the continuous evolution of the market, and constantly fluctuating customer attitudes explain why organizations choose to deal with customers who are increasingly difficult to apprehend and ready to change their supplier. Our work will focus on analyzing the impact of the factors that stimulate the act of terminating automobile insurance contracts at the end of their term.