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Abstract
Customer retention is important to the long-term viability of life insurers. This study examines associations between premium affordability, trust in the insurer, customer satisfaction, perceived value, claim settlement efficiency, and customer retention among life insurance policyholders in Rupandehi District, Nepal. Survey data from 361 policyholders recruited through convenience sampling were analyzed using descriptive statistics, PLS-SEM, IPMA, and NCA. The reported structural model indicates positive and statistically significant associations for claim settlement efficiency (coefficient = 0.847, p < 0.001), premium affordability (coefficient = 0.265, p < 0.001), trust (coefficient = 0.210, p < 0.001), and perceived value (coefficient = 0.107, p = 0.012). Customer satisfaction has a positive but not statistically significant association (coefficient = 0.089, p = 0.067). The model R-squared is 0.761. Because the study is cross-sectional and uses a convenience sample, the results should be interpreted as sample-specific associations rather than causal effects or population estimates.
Keywords: Trust of insurance company, Premium affordability, Claim settlement efficiency, Life insurance, Customer retention.
