What Does Persistency Mean?
Persistency is a percentage that signifies the number of clients that an insurance company has retained for an insurance product. A high percentage means that the product is doing well.
Insuranceopedia Explains Persistency
A lot of people buy insurance but not all of them keep it for a long period of time or continue paying the premiums. Those who keep on paying the premiums are the people who keep an insurance company afloat. Thus, insurance products with high persistency are what pays for underwriting activities and the general upkeep of the company.