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Insurance Regulatory and Development Authority (Irda) is planning to have a new formula for calculating persistency rates of life insurance companies.
Sudhin Roy Chowdhury, Member-Life at Irda said that the regulator will disclose the new formula in the next few weeks.
Persistency is presently disclosed by the companies for the 13th, 25th, 37th and 49th month.
According to recent reports, Irda had sent a circular to life insurers to make disclosures with respect to all lapsed policies and disclose segment-wise persistency rates for single premium policies and regular premium policies.
It is anticipated that there could a different persistency requirement and formula for insurance companies and agents, so that each stakeholder is responsible for the policy sold.
