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Several studies have demonstrated an inverse relationship between experience in an activity and perceived risk for the individual in the activity. That is, as experience increases, perceived risk decreases. This phenomenon has been labeled risk acculturation. The present study aims to examine prior rental car experience for its effect on estimated odds of an accident and likelihood to purchase rental car insurance.

A convenience sample of 19‐24 year old students read a car rental scenario within a questionnaire and responded to questions regarding past risk behavior, car rental experience, perceived risk, likelihood of insurance purchase, and related topics.

Compared to people who had not rented a car before, people with prior rental experience estimated the odds of an accident involving their vehicle to be significantly less likely (a risk acculturation effect). Also, subjects with prior rental car experience were significantly less likely to purchase a collision damage waiver and supplemental liability insurance. Of the variables in this study, only experience significantly predicted both types of insurance purchase. The two variables of estimated odds of an accident and knowledge of existing insurance coverage were not significant predictors for either type of insurance purchase.

Risk acculturation is best documented through a longitudinal study rather than the present cross‐sectional investigation. Although a sample of young adults with limited driving experience was helpful in identifying respondents who had not rented a car before, the results of the present study may not generalize to the broader population of car drivers.

The present study may be the first to identify a risk acculturation effect within an insurance context. However, the effect of experience on insurance purchase is independent of that of risk acculturation, and further research is needed to clarify the mechanism of the effect.

In this article, written as part of a consulting report for the insurance industry, key trends that are likely to impact the motor insurance industry are presented. These trends include: globalization; the rise of the cultural creatives; customization; the rise of the info‐tailor; and ageing. From these trends sketches of three scenarios are presented. These are the great divide; smart cars and smart insurance; and from cars for all to mobility for all.

The objective of this paper is to understand the relationships between service quality, perceived value and satisfaction because several studies endeavored to model these linkages. It is important to test these relationships with loyalty and word-of-mouth (WOM). Thus, it is important to test these relationships in the insurance sector since the relationship between these variables and WOM has not been studied in insurance.

This investigation proposes a theoretical model tested using structural equation modeling (SEM). A questionnaire survey was developed to explore the relationships among service quality, perceived value, satisfaction, loyalty and WOM. For this study, 744 valid questionnaires were collected from a sample of Portuguese car insurance holders.

The results revealed that service quality has a direct relationship with perceived value and satisfaction. In turn, perceived value has a direct relationship with satisfaction. Perceived value and satisfaction influence loyalty and WOM. Finally, loyalty influences WOM.

This investigation examines the mediating role of perceived value and satisfaction in the relationship between service quality (facility and interactive) and loyalty and WOM in the insurance industry. It fills a gap in the literature by exploring the variables that lead to positive WOM in the insurance industry; the authors do not know any study that links these variables with WOM. Also, the relationship between loyalty and WOM has been poorly studied, although it is well known that in services, loyal customers speak well of the companies. Thus, the authors try to fill this gap in the academic literature by analyzing these relationships.

An industry adage held that “there are two types of rental car companies: those that lose money and Enterprise.” The company that would become Enterprise Rent-A-Car was started in 1957 in St. Louis, Missouri, by Jack Taylor. Taylor set up Enterprise offices in neighborhoods rather than at airports because he believed that Americans would welcome a local option for renting cars when their own vehicles were being repaired. In 2010 Enterprise had more than 6,000 rental locations in the United States and a fleet of 850,000 cars in service. Its parent, Enterprise Holdings (comprising Enterprise, National, and Alamo brands) accounted for nearly half of the car rental market and was more than twice the size of Hertz, the number two competitor. Enterprise's competitive advantage was the result of the combination of its practices in hiring, training, compensation, organization, customer service, IT, and fleet management, among others.

The purpose of this paper is to understand the role that communication plays in the insurance industry, as well as its relational outcomes.

This investigation proposes a theoretical model tested using structural equation modelling. A questionnaire survey was developed to explore the relationships among communication, reputation, trust, commitment, loyalty and word-of-mouth (WOM). For this study, 744 valid questionnaires were collected from a sample of Portuguese car insurance holders.

The results show that communication directly influences reputation, trust and commitment. Communication also indirectly influences loyalty through reputation, trust, and commitment and communication indirectly influences WOM via trust and commitment. In turn, reputation influences trust and trust impact on relational commitment. Finally, loyalty influences WOM.

This investigation examines the mediating role of reputation, trust and relational commitment in the relationship among communication and loyalty and WOM, in a relational perspective. It fills a gap in the literature by exploring the importance of communication in the insurance industry. Thus, this study will be useful to decision makers in the insurance industry seeking to improve their insurance holders–insurance companies relationships.

This paper aims to examine empirically whether there is a real demand for takaful products among Muslims in the UK, and to assess the awareness about takaful insurance and its main principles among UK Muslim communities.

The paper uses empirical data collected via an online questionnaire.

The study shows that the survey respondents are likely to buy car, health, home and home contents insurance if the same cover is offered as conventional insurance and if prices are competitive. The paper also shows that there is quite a lack of awareness about takaful insurance and its main principles among UK Muslim communities, and that most respondents are only aware of the riba and maysir concepts. It also showed that about half the respondents are not sure whether takaful insurance is in accordance with Islam. The majority of the respondents prefer to get takaful products via banking channels rather than from independent takaful institutions. Not surprisingly, the majority of respondents agreed to the use of Arabic terms for the Islamic insurance to show that these are Islamic products and to differentiate them from conventional alternatives in order to attract more Muslim participants.

This findings presented in this paper would encourage more banks in the UK to develop takaful products to target the rapid increase in Muslim populations in the UK and increase the demand for Islamic insurance products. Some promotion strategies may be needed to increase the customers' awareness of the existing takaful products and, more importantly, to their compliance to the Shariah law. Despite the fact that there is an obvious preference among the survey participants towards using Arabic terms in takaful products, one could argue for the financial benefits of introducing these Islamic insurance products to non‐Muslim customers where Arabic terms are avoided but with the explanations of the main concept of takaful products.

The paper examines empirically (via an online questionnaire) whether there is a real demand for takaful products among Muslims in the UK.

Over the last decade, technological and social trends have significantly influenced the relationship between customers and insurers. New buying patterns, price comparison platforms and the usage of different interaction channels driving single-product purchases and impacting lapses have influenced insurers’ customer portfolios and development. The purpose of this paper is to study the features driving the customer relationship along three areas, namely, customer acquisition, development and retention.

After defining 14 related hypotheses, the authors use econometric analyses to quantitatively support these hypotheses in the three areas of interest. The authors build on a large-scale longitudinal data set from a Swiss insurance company covering the period from 2005 to 2014 and including 2,757,000 customer-years. The data comprise information on private customers, their contract history, including coverage and losses and the channels used for buying insurance. This analysis focuses on the two most common non-life insurance products, namely, household/liability and car insurance.

The authors provide descriptive statistics and results from econometric analyses to determine the significant features and patterns affecting customer development and retention. Among the main results, the authors underline the significant influence on cross-selling given by the customer’s age and the interaction channel. Customers from rural regions are more loyal and likely to conduct cross-buying when compared to their peers from urban regions. Car insurance holders are more likely to lapse than household/liability insurance clients. Finally, while newly acquired customers tend to buy only a single product, the authors show the importance of cross-selling for retaining customers. In fact, customer retention is positively influenced by the number of products hold.

This work is relevant for academics and practitioners alike, adding a quantitative basis to the understanding of managing customer relationships and for the development of further prospective models. Further work could investigate or add products, extend the study to other companies and focus on customer development with time.

This study explores a large-scale longitudinal data set. The analyses of customer acquisition, development and retention can support insurers to construct their own models for customer relationship management.

The increasing capabilities of artificial intelligence (AI) are changing the way organizations operate and interact with users both internally and externally. The insurance sector is currently using AI in several ways but its potential to disrupt insurance is not clear. This research evaluated the implementation of AI-led automation in 20 insurance companies. The findings indicate four business models (BM) emerging: In the first model the insurer takes a smaller part of the value chain allowing others with superior AI and data to take a larger part. In the second model the insurer keeps the same model and value chain but uses AI to improve effectiveness. In the third model the insurer adapts their model to fully utilize AI and seek new sources of data and customers. Lastly in the fourth model a technology focused company uses their existing AI prowess, superior data and extensive customer base, and adds insurance provision.

The purpose of this paper is to analyze the use of telematics in insurance and its consequences for the insurability of risks. Empirical results on monitoring policyholders or insured objects and its consequences for asymmetric information, as well as claims frequency and severity are discussed. Furthermore, potential future research questions that arise from the use of telematics in risk management and insurance are outlined.

The paper systematically reviews existing studies and then investigates the consequences of telematics using Berliner’s insurability criteria. The results are based on 52 academic studies and industry papers published from 2000 to 2019.

The findings emphasize the effects of new information on information asymmetry and risk pooling, the implications of new technologies on loss frequency and severity, legal restrictions and ethical consequences of the use of telematics in the insurance field. Problems with the insurability impede the market development of innovations such as telematics tariffs.

Despite its increasing relevance for businesses at present, research on telematics in insurance is limited. Some papers can be found in the IT domain, but relatively little research has been done in the business and economics literature. The authors illustrate where the research stands currently and outline directions for future research.

This aim of this paper is to investigate the impact that religious factors have on a consumer's perception of brand loyalty in the context of the services industry. Specifically, the study focuses on the attitudinal/affective form of brand loyalty. An empirical investigation was conducted to test whether the religiosity and religious centrism of Muslim consumers can instill attitudinal brand loyalty towards an insurer selling a religiously-conforming high-involvement indemnity service.

An online survey was conducted with 208 Muslim consumers, and structural equation modeling (SEM) analysis was used to test the relationships between the exogenous and endogenous variables.

The results shows that there is a positive relationship between the exogenous religiosity and religious centrism constructs, and the endogenous attitudinal brand loyalty, price tolerance and word-of-mouth constructs.

The findings of this research study suggest that religion can have a significant impact on consumers' choice when purchasing an indemnity service such as a car insurance service. Given the fact that religious values are persistent over time, there are some potential long-term benefits for companies that can identify the lucrative religious consumer segments that are present in the local and global markets.

This study provides valuable insight into the UK Muslim consumer behavior by exploring the religious factors that can influence consumers' brand loyalty toward buying high-involvement religiously-compliant products and services. The findings of this study also indicate that the existing TRA and TRB models in the social sciences literature may need to incorporate a new ritualistic/religious dimension to the existing attitude-intention relationship saga.