The Insurance Regulatory and Development Authority of India (Irdai), in its Handbook on Indian Insurance Statistics 2015-16, has provided persistency figures of the life insurance industry—and they are not looking good. For FY2016, the life insurance industry, on average, had a persistency of 61% in the 13th month, which means: 1 year after the sale, only 61 out of every 100 policies were renewed.
Persistency measures how long customers persist with their policies. By the 5th year of policy sale, 16 out of the 24 life insurance companies couldn’t retain even a third of the policies.
