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Sunday, September 25, 2016

Persistency Ratio - ICICI Pru.Life and HDFC Life Insurance..!

Persistency ratio -  ICICI Pru.  Life and HDFC Life Insurance..!
The historical persistency ratio of the India's  two leading life insurance companies ICICI Prudential Life Insuranc and HDFC Life Insurance.
Persistency levels measure the percentage of customers who continue with their policies after a given period of time.
In simple words, the persistency ratio tells you how many policies sold in the past are still alive and funded by the policyholders today.
Simply put, persistency ratio = No. of Clients Paying the Premium / Net Active Clients * 100.
Persistency of Life Insurance Policies, 2014-15.

This number is an important metric in insurance parlance, as life insurance is a long-term contract. In the initial years, the premium collected goes towards meeting costs. It is the subsequent premiums that start contributing to the margins.
Given its importance, insurance companies constantly look for ways to increase this ratio. A high persistency rate is indicative of satisfied customer and effective sales practice.

Now, it's quite well known, India is the 10th largest life insurance market globally and has a large unpenetrated insurance market. Thus, it is believed to be one of the leading growth sectors in India.
Persistency Ratio - ICICI Pru.Life and HDFC Life Insurance..! Reviewed by S. Chitra on September 25, 2016 Rating: 5 Persistency ratio -  ICICI Pru.  Life and HDFC Life Insurance..! The historical persistency ratio of the India's  two leading life in...

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