Abstract: By introducing the insurer’s credits, this paper constructs a model to analyze how insurance applicants select insurers when there are differences among insurers’ credits. Further, considering the conditions of periodical insurance purchase, it analyzes the effects of the adjustment of expected insurer’s credit made by the insurance applicant on the renewal decision. On such basis, it discusses the influence of the risk distribution of the object and the exogenous changes of the wealth of the applicant on the renewal decision.

Key words: insurer’s credits; insurance purchasing; renew