Since 1995, life assurance and pensions firms have been required to submit information to regulators concerning the persistency of their life assurance and pensions business. Persistency is the extent to which premiums payable are annually renewed.
The FSA has now published the 2009 survey of the Persistency of Life and Pensions policies which details trends in industry persistency over the past few years.
The FSA regards persistency as a measure of the quality of sales of life and pensions products. Furthermore, persistency levels are an important element of firms’ prudential financial management.
The survey reveals that while overall levels of persistency have remained constant, some product categories have witnessed a decline.
For further information: FSA persistency data 2009