12/03/2023
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𝗪𝗘 𝗔𝗥𝗘 𝟮𝟬𝟮𝟮 𝗣𝗘𝗥𝗦𝗜𝗦𝗧𝗘𝗡𝗖𝗬 𝗖𝗛𝗔𝗠𝗣𝗜𝗢𝗡
I would like to thank god all my clients and Especially my Team Leadgen Team Sage Team Genmi and Team EDGE. This will never be possible without these support. Thank you! Lets Go 2023.
TRIVIA 📣📣📣
Why is the persistency ratio important?
The persistency ratio is important for insurance companies as well as customers. Here’s how:
1.Importance of persistency rates for insurance companies: A high rate of persistency indicates the faith of a customer in the insurance provider. If a customer keeps their health plan with a company for a long time, it implies a high customer satisfaction rate. A high persistency ratio highlights the company’s credibility as their customers are willing to stick with them for such a long time.
2.Importance of persistency rates for customers: Since insurance often serves as an investment product, a high persistency ratio is extremely beneficial for customers. The longer they stay invested in the plan, the longer they can avail tax benefits. Moreover, since the health insurance policy offers them financial protection against the costs of medicines and treatments, the insurance coverage doubles up as their emergency fund. They always have a financial cushion to fall back on, and they end up saving more money in the long run.
Moreover, when customers surrender their policy, they lose their coverage in addition to paying surrender charges. Not only does this leave them unprotected but also results in considerable losses. A customer with a high surrender rate can find it harder to purchase insurance in the future. Most insurers see such customers as unreliable. With a negative experience in the past, the customer too is likely to avoid buying insurance in the future.
What are the reasons that lead to a low persistency ratio?
Here are some common reasons behind a low persistency ratio:
1.The insurance company does not provide good after-sale services.
2.The claim settlement ratio of the insurer is low.
3.The customers are not satisfied with the features of the policy.
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