Regulator wants insurers to meet life insurance persistency targets

The Indian insurance regulator is monitoring the persistency levels of life insurance companies and working on standard products for residential property insurance and term insurance.

The IRDAI wants 13th month persistency at at least 90% and 61st month persistency at a minimum of 65%, reported Hindu Business Line.

“I would urge all of you to move towards this at the earliest,” said Mr Subhash Chandra Khuntia, IRDAI chairman yesterday at the CII Insurance and Pensions Summit.

The IRDAI would be monitoring this and has also asked all life insurers to try and meet these targets, he said.

General insurers

In addition, Mr Khuntia also asked general insurance companies to ensure repeat purchase and renewal of policies as these are largely for a one-year period. “This should be an indicator of your efficiency and customer relationship,” he said.

He also said that the IRDAI is working on standard products for insurance of residential property as well as term insurance which would be introduced by all insurers.

“It will become much easier for policyholders to buy such products,” he said.

Source: Asia Insurance Review