Why ValuEnable?
Industry Views
on Persistency
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“It (persistency) is a barometer for the quality of sale made by the insurer.”
- Ashish Rao, Head - Customer Service & Operations, ICICI Prudential
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IRDAI wants 13th month persistency at least 90% and 61st month persistency at a minimum of 65%.
“I would urge all of you to move towards this at the earliest.”
- Subhash Chandra Khuntia, Ex-Chairman, IRDAI at CII Insurance and Pensions Summit, Sep'20
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“While the 13th-month persistency shows how satisfied policyholders are with the products they have purchased, the 61st-month persistency indicates policyholders’ loyalty towards the insurer and the level of satisfaction with overall services”
- Yusuf Pachmariwala, EVP & Head - Operations, Tata AIA Life
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People have started borrowing against life policies as collateral more than before so that they are able to continue to have cash all the time, life insurers said
- Mint Article (Aug’20)
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People who bought 20-30 year tenure life insurance policies are surrendering policies and withdrawing money, which is tax-free. This, they are doing to keep as much cash as possible, and later start new policies or investment plans once the pandemic is over and the situation improves.
- Life Insurance Executive
Harsh
Realities
Low customer retention (persistency) has been plaguing the Life Insurance industry for years.
Customers are mostly unaware of available product features leading to misinformed decision of surrendering their policies and losing long term policy benefits.
Efforts to retain follow a one-size-fits-all approach without any customisation to suit customer needs.
Low customer retention (persistency) has been plaguing the Life Insurance industry for years.
Customers are mostly unaware of available product features leading to misinformed decision of surrendering their policies and losing long term policy benefits.
Efforts to retain follow a one-size-fits-all approach without any customisation to suit customer needs.
The Silver
Lining
To overcome these challenges, we’re building a comprehensive solution dedicated to serve existing policyholders and Life insurers through
Three Pillars of
Persistency Management
...which enables value for all our
STAKEHOLDERS
