Which life insurer has the most loyal customers?

An analysis of persistency ratio of life insurers for the period ending on the quarter ended on September 2024 by Cafemutual reveals how much premium amount and no. of policies are renewed by the policyholders at the end of 13th, 25th, 37th, 49th and 61st month.

Persistency ratio measures the rate of renewal of insurance policies both in terms of number of policies and the premium attached to the policies. Higher persistency ratio shows that an insurer has better insurance renewability rate.

If we look at 13^th months persistency in terms of number of policies, Axis Max Life leads the pack with 83% retention.

This is followed by Tata AIA with 82.72, HDFC Life at 78.67%, Pramerica Life at 78.42% and ICICI Prudential Life at 78.3%.

These numbers show how well these insurers retain their customers in the crucial first year after policy purchase.

Let’s look at the 13^th month persistency ratio of life insurers with respect to the total number of policies sold:

Looking at the longer-term policy retention at 61 months or 5 years, ICICI Prudential Life is on top with 76.9% persistency.

Kotak Life is at the second position with 61^st month persistency ratio of 56.05%.

Further, SBI Life at 55.95%, Bandhan Life at 55%, and Tata AIA Life at 54.45% are the other insurers with healthy long term persistency ratio. These insurers maintain their customer relationships over a longer five-year period.

Let’s look at the 61^st months persistency ratio:

When it comes to premium persistency at 13 months, ICICI Prudential Life tops the chart with 86.6% retention, followed by Tata AIA Life at 86.35%, SBI Life at 84.16%, Axis Max Life at 84%, and Kotak Life at 82.99%. This shows how successfully these insurers retain their premium value in the first year.

Let’s look at the 13^th month persistency ratio based on premium:

For premium persistency at 61 months, Tata AIA leads with 68.23% persistency, followed by HDFC Life with 67.86% retention, third is SBI Life at 66.14%, Aditya Birla Life at 65.04% and ICICI Prudential Life at 64.1%. These numbers reflect these insurers' ability to maintain premium value over a five-year period.

Let’s look at the 61^st month persistency based on premium amount:

Please note that the persistency ratio of Acko Life, CreditAccess Life and Digit Life could not be obtained till the time of filing this article.