July 24

Persistency

How to compute for persistency?
Study Period- 12 months
New business APE- total issued APE for the last 12 months
Lapse- 19th month lapse APE for the last 12 months
Monthly- 19th monthly premium
Quarterly- 7th quarterly premium
Semi-annual- 4th semi-annual premium
Annual- 2nd annual premium
Reinstatement
19th month lapse
Reinstated within the study period

PRODUCTS THAT AFFECT PERSISTENCY
Set for Life
Set for Health
Set for Tomorrow

PRODUCTS THAT DO NOT AFFECT PERSISTENCY
Term products (Kandu and Corpcare)
Top-ups
Withdrawn policies
Single Premium
Formula for computing Persistency
12 months New Business APE - 19 months lapse + reinstated policies, if any
12 months New Business APE
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