Page 31 - WOW Magazine Feb 23

Importance of Persistency

in Life Insurance

Madhavan Sadagopan

SVP & Head – Customer Retention

Life Insurance is a long-term product that results in companies having a long-term relation with customers.
Persistency in Life Insurance, simplistically explained, is a measure of how long the customers renew their policies.
This is one of the most important metrics in a Life Insurance Company and determines what our customers feel
about our products and services and further translates into profitability and solvency for the company.

Customers are at the core of ensuring continuity of renewal premium. For a persistent business, we must ensure
that the customer realises the financial need, assesses the product, consumes it, and stays with it for the entire
tenure to get the optimum benefit out of it. It is imperative for us to ensure that the right product based on the
customer’s needs is sold to improve renewals , address customer concerns with right approach and within time
frame. Each one of us is custodian of Customer hence persistency is accountability of all.

We have taken various initiatives viz., Persistency Club, Top 20-20 contests, Project Turnaround,
Higher Incentives with Higher Persistency with a specific focus to improve persistency.
Thanks to the sales team, branch ops team & Customer Retention team for enabling us to reach this milestone.

Now we are into the crucial month of Feb & Mar – It’s time to increase our effort & gear up to capitalize on business
opportunities, Let’s ensure to achieve a new milestone.

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