aureus-insights_logo

All Posts

Factors Impacting Retention

'Retention' refers to the ability of a company to retain its customers over some specified period. High customer retention means customers of the product or business tend to return to, continue to buy or in some other way not defect to another product or business

Persistency’, during a period may be defined as the proportion of policies remaining in force at the end of the period out of the total policies in force at the beginning of the period. In other words, persistency is the percentage of business retained without lapsing or being surrendered. Low lapsation means high persistency and vice versa.

Persistency ratio measures the number of policies that continue in the books of the insurer by the end of the first year (13th month persistency), second year (25th month persistency), third year (37th month persistency), fourth year (49th month persistency) and fifth year (61st month persistency).

Below, we unearth some of the factors that impact persistency.

Factors-impacting-Persistency

Related Posts

6 Factors to Consider Before Building a Predictive Model for Life Insurance

If a life insurer wants to build a predictive model, how should they go about it?  In this article, we explore the factors that need to be considered before beginning actual model development. We will do this by using the example of predictive models for improving persistency. (Improving persistency for a life insurer means increasing the volume of business they retain.)

How Event-Driven Processes are Used to Measure Customer Experience

Companies design application processes to provide the best possible experience for their customers. These processes rely on application and customer-originated events to function. These events and their outcome form the basis of the customer’s experience. Therefore, event-driven philosophy is an ideal way for companies to measure customer experience.

Top 5 Ways AI Will Impact the Insurance Industry in 2019

I recently saw a tweet from Mat Velloso - “If it is written in Python, it’s probably machine learning. If it is written in PowerPoint, it’s probably AI.” This quote is probably the most accurate summarization of what has happened in AI over the past couple of years. A few months back, The Economist shared the chart below that shows the number of CEOs who mentioned AI in their Earnings calls. Towards the end of 2017, even Vladimir Putin said: “The nation that leads in AI ‘will be the ruler of the world.” Beyond all this hype, there is a lot of real technology that is being built. So how is 2019 going to look for all of us in the insurance world?