Persistency rate
Also called: persistency, policy persistency
Persistency rate is the share of policies still in force after a set period, often 13 or 25 months, used by carriers and agencies to measure how well business sticks.
Carriers watch persistency closely and may use it in contracts and bonuses. Low persistency also means more chargebacks and less renewal income.
Tracking it by agent shows who writes business that stays, which is as important as who writes the most.
Persistency is one of the clearest measures of book quality, and buyers look at it when valuing a book.
"Her persistency rate is higher than the agency average, so her business stays on the books."
How do you measure persistency rate by agent?
For a group of policies issued in the same period, divide the number still in force after a set time, such as 13 months, by the number issued, and compare agents on the same basis.