Impact of Digital Engagement Frequency on Insurance Customer Satisfaction and Policy Renewal: A Logistic Regression and CART Approach

Abstract

Introduction: The insurance sector is experiencing a major shift as a result of customers' changing expectations and the fast adoption of digital technology. Understanding the elements that impact client happiness and retention is crucial for insurers looking to stay profitable and promote long-term growth, especially with the sector's intense competition.

Objectives: This study examines how digital engagement frequency affects customer satisfaction and policy renewal in the insurance industry

Methods: Using logistic regression and Classification and Regression Trees (CART), we analyze the relationship between digital platform use, overall product satisfaction, and renewal behavior.

Results: Results show that frequent digital engagement significantly boosts renewal likelihood, especially for customers with less than three years of policyholder experience. Product satisfaction also plays a crucial role, with higher satisfaction leading to greater renewal rates.

Conclusions: These findings offer practical insights for insurers aiming to enhance retention through digital engagement and satisfaction. The study highlights the importance of long-term customer relationships in driving renewal decisions.