BackTata AIA records better persistency ratio than peers in FY22
Despite a challenging business and economic environment, Tata AIA Life has performed well on persistency and death claim settlement ratio, the company said
PremiumTata AIA Life Insurance Co. Ltd. (Tata AIA) has said it saw better persistency levels in FY2022 than other Indian life insurance companies, despite a challenging business and economic environment.
Compared to FY21, the 13th month persistency ratio (based on premium) of the company has improved to 87.75% from 86.48%. The company’s 25th month persistency is now 79.48%, up from 75.84% in FY2021.
Persistency ratio is the percentage of consumers who choose to renew their life insurance policy every year. Higher the percentage of consumers opting for renewal means they are satisfied with the product purchased from the insurer and its service. In a sense, the persistency ratio for the first few years after policy purchase is most important, given that dissatisfied consumers would avoid renewing their policy in the initial years itself.
Tata AIA Life measures operational excellence vide two metrices - persistency and death claim settlement ratio. Despite a challenging business and economic environment, Tata AIA Life has performed very well on these matrices in FY2022. During the last fiscal, its Individual Death Claims Settlement ratio improved from 98.02% in FY21 to 98.53%.
“To be the best on persistency ratio is a testimony to our consumer centric way of working - to delight our consumers across all stages - from the point of sale to consumer onboarding to renewal and beyond. Keeping our consumer’s needs at the forefront, we offer multiple new-age digital solutions for their benefit and convenience. We are committed to serving our customers with speed and agility as their preferred life insurance partners," said Naveen Tahilyani, managing director and chief executive officer, Tata AIA Life.
To support its ‘Customer First’ mission, Tata AIA Life has introduced several ease of doing business initiatives. A variety of steps like bank KYC, digital pre-submission calling, telemedical examination reports, robotic process automation and optical character recognition have been simplified and streamlined in the process of buying life insurance. The integration of credit bureaus, government databases, and third-party administrators has enabled a seamless customer onboarding experience, simplified underwriting and issuance processes, and compliance with regulatory requirements.
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