Private life insurers have been able to retain less than a third of the policies sold 5 years back
What would you call a product that is sold for 15 years but discontinued after just five? What would you call an industry that is unable to keep customers holding on to a product that was sold for the long term but is stopped midway? In India, we’d call this the life insurance industry, which is displaying signs of huge churn—losing customers on one hand, and trapping new ones on the other. A look at a single metric, which the insurance regulator releases, clearly points to large-scale malpractice in the industry. Here’s a closer look.