A Research On Influence Factors Of Auto Insurance's Renewal Rate Of Company A

In recent years,with the steady development of the insurance industry of our country,the property insurance industry has also made rapid progress.For the property insurance premium income of our country,auto insurance takes the most part of it.As the increase of the automobile consumption and some relevant policies introduced by the government,rate of auto insurance covering has been constantly improved.Because the products in auto insurance market are quite similar,price competition and some marketing tools with high cost have been main methods of market competition after the commercial auto insurance reform.As a result,it is hard for property insurance companies to gain profit while maintaining market share.In this case,it is of great importance for property insurance companies to increase renewal rate of the auto insurance and maintain customers' loyalty.On the one hand,high renewal rate can support the business platform and help expand the market share of the company.On the other hand,renewal of insurance can save time and cost of developing new clients.This paper firstly explains the concept and pattern of the customer behaviors basing on the point of marketing theory to explain the essence of renewal behavior.Then it introduces Customer Loyal and Customer Lifetime Value as well as the particularities of insurance clients' loyal to lay a theoretical foundation for the following study.On this basis,the current situation and the development trend of renewal of auto insurance in the market are introduced.We use data in company A to analyze the significant values of renewal of insurance for customers,auto insurance department and even the whole company.Next,We find the factors in company,customers and the vehicle characteristic levels that can influence the renewal rate of auto insurance and we use Logistic regression analysis method to set up the model structure and quantitative calculation formulas and build the insurance renewal model.Then we extract the main factors influencing the rate of renewal and explain the reasons in terms of customers' intention and company's strategy.Finally we put forward recommendations to improve the rate of company's renewal of auto Insurance according to the empirical results.