CUSTOMER RETENTION STRATEGIES AND PROFITABILITY AMONGST INSURANCE COMPANIES IN KENYA: A CASE OF LIBERTY LIFE ASSURANCE CO. LTD

This study sought to investigate the influence of customer retention on profitability insurance companies in Kenya using Liberty Life Assurance Company Ltd as a proxy. The Specific objectives were examine effect product quality assess service, and establish firms service/product pricing profitability. theories Assimilation, Contrast, Assimilation-Contrast guided this current study. Descriptive correlational design used target population 2, 653 customers who have held life policies since 2010 with Co. sample consisted 347 respondents. A questionnaire was collect primary data from while structured interview schedule qualitative 10 managers. Validity instruments ensured by consulting experts Business Administration Department, Africa Nazarene University. Reliability achieved through test-retest method randomly selected 39 customers, whereby Cronbachs Alpha 0.849 calculated obtained data. Qualitative analyzed thematic analysis correlation regression analyze relationship between strategies Ltd, Kenya. findings showed that 40.4% changes at is attributed investigated (R2 =0.4042). Findings also (β=0.428) services (β=1.188) (β=0.601) all are significant predictors {F (1, 338) =88.495, P<0.05} Life. It concluded quality, services, critical for enhancing firm therefore recommends should adopt corporate social responsibility practices well flexibility mode premium payment improve stabilize their base. Further research be done expanded benefits packages