Customer retention is one of the most concerning issues in the insurance sector, thanks to the rise in the level of competitiveness in the market, along with the escalating demands of the customers. This report proposes the use of AI-powered predictive models that can successfully aid in enhancing customer retention within the insurance sector by effectively identifying customers who have the potential of leaving the company. Based on the past data possessed by the insurance sector, ranging from the demographics of the customers, insurance plans, claims, and the payment patterns, this report proposes the application of various machine learning algorithms, including logistic regression, decision tree, random forest, and gradient boosting. Based on the report, the application of AI-powered predictive models can successfully pin-point the customers with a huge possibility of leaving the insurance companies early on, allowing the insurance companies to apply necessary measures for their retention.

Mr. Mohanraj S, Mr.Nandha Kumar M S, "AI-Driven Predictive Models for Customer Retention in The Insurance Industry" International Journal of Advanced Multidisciplinary Research and Educational Development, V2(1): Page(1080-1084) Jan-Feb 2026. ISSN: 3107-6513. www.ijamred.com. Published by Scientific and Academic Research Publishing.