Who has the best persistency ratio?

When customers allow policies to lapse after paying premium for couple of years, they suffer losses

Persistency ratio, which tells you what percentage of an insurer’s policies are still in force after a certain period of time, such as one, three or five years, is a criterion you should definitely look up when choosing your life insurer. This data gives you an idea of whether policyholders are retaining their policies with the insurer or exiting it after a few years
 

• After five years, only one insurer, IDBI Federal Life, was able to retain more than half the policies it had sold to customers
• A median level of 28 per cent for five-year persistency indicates half the insurers were able to retain less than 28 per cent of their policies after this period
• Policies lapse because the wrong policies get sold to customers, and when they realise they have been taken for a ride, they allow it to lapse by not paying the premium
• When customers allow policies to lapse after paying the premium for a couple of years, they suffer losses
• A relatively high persistency ratio indicates customers like the policies they have been sold, it suits their needs and hence they continue to hold them