Persistency Quiz

Persistency is: Choose all Relevant

• The quality of after sales service of the insurance company and customer engagement.

• The policyholders’ decision to stand by their long term financial commitments.

• The quality of sales provided by the insurer and the sales person.

• A customer’s decision to stay invested and pay renewal premiums.

Persistency is measured by premiums paid on the _______.

Choose any one

• 13th and 61st months

• 26th and 72nd months

• 10th and 100th months

• 39th and 84th months

What does the 13thmonth persistency indicate?

• The product has indeed been sold on need based requirement.

• No mis-selling by the sales person.

• Longevity of the policy.

• The policyholders’ decision on long term financial commitment.

What does the 61stmonth persistency indicate?

• Continuity and longevity of the policy.

• No mis-selling by the sales person.

• Quality of after sales service of the insurance company and customer engagement.

• The policyholders’ satisfaction with the service provided for years.

What happens if the 61st month persistency of an insurer is low?

• The values of NBM and IGAAP will go up.

• The surplus amount will not be met and hence the bonus will get impacted.

• The actuarial calculation for the product performance will go wrong.

How does a customer benefit from persistency?

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

• Avail risk cover for the entire policy term.

• Helps to protect their family financially against unforeseen events.

• Reduces his / her costs.

How does an insurer benefit from persistency?

• Optimization of long-term income.

• Reduction in costs.

• Rewards and recognition from various beneficiaries.

• References of new business.

Which of the following are steps to prepare for persistency calls?

• Analyze the customers’ profiles to understand their needs.

• Thoroughly practice the top 5 USPs of the product.

• Understand the customer's policy details and premiums paid thus far.

• Identify the customer’s risk level.

Which of the following are necessary checks before making a persistency call?

• The place from where you are making the call is absolutely quiet and without any disturbance.

• Check your internet connectivity!

• If making a video call, be in an informal dress.

• Ensure that you phone or laptop is charged fully.

What will happen if a persistency call is unstructured?

• Might leave customers confused about the reason for the call.

• Will be a waste of time and effort.

• Will not create the right impression about the insurer in the customer’s mind.

• Will be directionless.