Factors Affecting Customer Retention in the Non-life Insurance Sector in Addis Ababa, Ethiopia

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Addis Ababa University


The main objective of the study is to identify factors that influence customer retention in the non life insurance sector in Addis Ababa, Ethiopia. In this research study, customers of non life insurance sector were targeted as the population while satisfaction, trust, price, and switching barriers were taken as predicting variables towards customer retention as criterion variable. The researcher used questionnaire to collect relevant data for the research questions from sample respondents of three insurance companies which were selected using simple random sampling. Pearson correlation and multiple regression analysis were used to examine the relationship between the independent variables and customer retention using SPSS 20.0 and the results showed that all factors contributed to explain customer retention but comparatively price had the largest impact on customer retention than trust, satisfaction and switching barriers. Thus insurance companies should design a strategy to address these factors for increment of their existing customers‟ retention



Customer retention, satisfaction, trust