Persistency rate = A/B
A = Number of policies (net of free look surrenders, policies with initial payment failures and rescissions) activated between X and Y months ago, that persisted at least X months
B = Number of policies (net of free look surrenders, policies with initial payment failures and rescissions) activated between X and Y months ago
Here are the numbers to use when calculating persistency by month:
- 2 month: X=2, Y= 4
- 3 month: X=3, Y=15
- 4 month: X=4, Y=16
- 7 month: X=7, Y=19
- 13 month: X=13, Y=25
Updated