Life Insurance Corporation of India (LIC) has seen an improvement in its persistency ratios for the year ended March 2016 as compared to the previous financial year.
Persistency refers to the ability to keep renewing a customer’s policy till it reaches maturity. The higher the persistency rate, the higher the renewal premiums. There is a lot of emphasis on higher renewals.
Overall, the persistency ratio of insurance policies from the fourth year on is becoming a concern area for life insurance companies. While insurers have been able to improve the 13th and 25th month persistency, getting customers to stay invested beyond the fifth year has been an issue.
7 best practices to keep your money safe from fraudsters
Read More