Persistency Quiz

What does the 61st month persistency ratio indicate ?

Select the correct answer from the list below

• Quality of sales offered by the insurance company and their sales persons

• Quality of after sales service and customer engagement

• No mis-selling by the sales person

• None of the above

What does the 13th month persistency ratio indicate?

Select the correct answer from the list below

• Quality of after sales service and customer engagement

• Policyholders’ satisfaction with the service provided in all these years

• Policyholders’ decision to continue their long term financial commitment and reap the benefits of insurance

Persistency indicates how long customers stay with their policies, looking at the number of policy renewals year after year. The ratio is measured both by policy numbers and premium collected.

Identify whether the above statement is true or false

• TRUE

• FALSE

Insurance business becomes profitable when the customer pays policy premiums year on year till the premium payment term is over.

Identify whether the above statement is true or false

• TRUE

• FALSE

Which of the following tips helps to improve persistency?

Select the correct answer from the list below

• Use Preferred Billing Date as an option in SI in case a customer wants to use grace period

• Provide premium discounts to the customer

• Do need analysis and pitch the products accordingly

A high persistency ratio indicates a large pool of satisfied customers.

Identify whether the above statement is true or false

• TRUE

• FALSE

Which of the following measures should be adopted to ensure the customers pay their premiums regularly?

Select the correct answer from the list below

• Speak politely when connecting with a customer

• Remember the customer's profile

• Use Quick Register tool to register for auto pay if not registered at the new business stage.

Which of the following is a consequence of low persistency ratio?

Select the correct answer from the list below.

• IRDAI will cancel the insurance company's licence

• The actuarial calculation for the product performance will go wrong and the value of New Business Margins (NBM), Indian Generally Accepted Accounting Principles (iGAAP) and the embedded value will go down

• Employment in the insurance sector will go down

Identify the benefits of the Persistency Skill Model?

Select the correct answer from the list below

• Provides you with a structure to follow to keep you on track

• Allows you to listen to responses rather than focusing on what you say

• Enables you to have a consistent performance leading to consistent results

• All of the above

How does a customer benefit from persistency?

Select the correct answer from the list below

• Low cost in continuing a policy compared to purchasing a new policy

• It helps them in getting discounts on renewal premiums year on year

• It makes them eligible for better and faster service

• Reduces their costs