Life insurers to have own criterion for agent persistency: IRDA

India Infoline News Service | Mumbai |

All Life Insurers are required to have their own company specific persistency criterion for renewal of Individual and Corporate Agency from 1 July 2014

The Insurance Regulatory and Development Authority (IRDA) on Wednesday said all life insurers were required to have their own company-specific persistency criterion for renewal of individual and corporate agencies from July 1.
Renewal of Individual Agency License and Corporate Agency License will not be subject to meeting the Persistency Rates, IRDA said in a notification.
All Life Insurers are required to have their own company specific persistency criterion for renewal of Individual and Corporate Agency from 1 July 2014, IRDA added.
Persistency refers to percentage of life insurance or other insurance policies remaining in force; percentage of policies that have not lapsed. The higher the percentage, the greater the persistency.
Since it is an important measure of a company’s retention of its life insurance business, most companies extend every effort to increase persistency.


 

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