Towards Fair Pricing and an Optimized Customer Experience: A Study of the Drivers of Premiums and Insured Satisfaction

This paper aims to identify ways to improve insurance premium pricing and claims management to optimize customer experience and increase customer satisfaction. It examines the interaction between variables with two objectives in mind: firstly, to assess the impact of certain aspects of claims management and insurance premiums on customer satisfaction and, secondly, to analyze the role of the cost and severity of claims in insurance premium pricing. Based on a sample of 90 SECA Assurances customers from the 2018–2024 period, and after confirming the endogeneity of the insurance premium variable, we opted for an instrumental variable estimation using the two-stage least squares (2SLS) method.
The results show that policyholder satisfaction depends largely on the human and informational dimensions of the service, which reinforce the technical and financial aspects. In addition, insurance premiums are mainly determined by the severity of claims, while the cost of claims does not provide a statistically significant explanation for the variation in premiums.
The originality of this paper stems from its integrated approach, considering pricing policies and claims management as interrelated constructs shaping customer satisfaction, thereby offering both theoretical and managerial contributions to life insurance service.

Insurance, Premium pricing, Claims management, Customer satisfaction

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