Persistency ratio is the ratio of life insurance policies receiving timely premiums in the year and the number of net active policies. The ratio indicates how many policyholders are paying the due premiums regularly on the policies with the insurer.

How do you calculate persistency rate?

Persistency ratio is calculated thus: number of policyholders paying the premium divided by net active policyholders, multiplied by 100.

What is the meaning of persistency in life insurance?

Persistency is a percentage that signifies the number of clients that an insurance company has retained for an insurance product.