Embracing Persistency-Key Metric to Life Insurance Profitability in India Satuluri Ramesh Kumar1, Radhika Raavi2 1General Manager, Sales Training with Exide Life Insurance Company Limited. He can be reached on ramesh.satuluri@exidelife.in 2MBA Programme offered by Dr B.R. Ambedkar Open University. She has been associated with Hyderabad, Management Association (HMA) for several years. She can be reached at: radhika.ramanchi@gitam.edu JEL Classification: G22 Online published on 15 January, 2020. Abstract With more than 27, 000+ crores (37116 crores) (Source: http://www.lifeinscouncil.org/about-us/industry-overview) deployed as capital and over 11, 148 (11280) (Source: http://www.lifeinscouncil.org/about-us/industry-overview) branches becoming operational, life insurance companies are still grappling to wipe out accumulated losses. Going slow on expansion, Insurance Companies are attempting to take an evaluated risk. Persistency plays a vital role in life insurance profitability. The absence of empirical studies in India, about persistency of insurance companies became the motivation for the study. The main objective of this study is to understand the impact of persistency on life insurance business and profitability and to suggest measures in improving persistency. This article is descriptive in nature which aims to understand the impact of persistency on the overall business of life insurance industry and its profitability. Related review of literature is structured around the key components of persistency, customer retention and future trends in retaining customers for long term. At present, there is one public sector company, that is, Life Insurance Corporation and 23 private life insurance companies. For the study purpose, we had selected all companies in Indian life insurance space. Top Keywords Persistency, Life insurance, Profitability, Renewals, Futuristic trends. Top |