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Factors Impacting Persistency

Factors Impacting Persistency

‘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).

In this infographic, we unearth some of the factors that impact persistency.



About Beena Menon

Lady with strong commitments! Beena is handling the SME Insurance segment at Aureus. She has more than 24 years of experience in Insurance and have worked for renowned organizations in India and Dubai. She has completed her Bachelor’s Degree of Commerce from Bombay University. She has also completed her Associateship from Insurance Institute of India (Life Branch). Beena can be seen listening to music and cooking yummy dishes during her leisure time.

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