I keep hearing about the persistency factor in health insurance. Can someone explain what it is and why it’s so important? I’m curious about how companies use it and how it impacts customers.
Persistency factor is basically the percentage of policyholders who renew their policies every year. It’s important because it shows how satisfied customers are and how loyal they are to the insurance company. A high persistency ratio means more steady income for the company and better trust from customers.
@Hollis
Got it. So, what factors affect persistency? Is it mostly about pricing, or are there other things too?
Haru said:
@Hollis
Got it. So, what factors affect persistency? Is it mostly about pricing, or are there other things too?
Great question. Pricing is definitely a factor, but customer service, claims processing, and the variety of products offered also play a big role. If customers feel they’re getting good value and service, they’re more likely to stick around.
Haru said:
@Hollis
Got it. So, what factors affect persistency? Is it mostly about pricing, or are there other things too?
Makes sense. Do insurance companies do anything specific to improve persistency?
@Haru
Absolutely. They focus on better customer experiences, like making claims and renewals easy, offering personalized communication, and adding extras like wellness programs or telemedicine. Continuous improvements based on feedback also help a lot.