FE Persistency

[insurancecareer]

Has anyone tracked FE persistency on a regular basis? My assumption is that it would be higher than that of other lines, but I wanted to ask your opinions. I believe I may remember from previous posts to expect about 20% to cancel.

 

[jdeasy]

Has anyone tracked FE persistency on a regular basis? My assumption is that it would be higher than that of other lines, but I wanted to ask your opinions. I believe I may remember from previous posts to expect about 20% to cancel.

Not takens are not the same thing as persistency. And FE is much lower on average persistency than other lines.

No reason to not stay above 80% though. Most companies require over 70% to go on trips that you qualify for by production.

 

[insurancecareer]

Sorry, I meant to write that cancellations would be higher, reducing the persistency. 80% is much higher persistency than I would have expected.

 

[jdeasy]

Sorry, I meant to write that cancellations would be higher, reducing the persistency. 80% is much higher persistency than I would have expected.

Since companies use the 70% to qualify for trips, some use 75%, I would guess that's good.

It's also going to depend on production. I have some comapnies that I hardly write any business with that stays in 95% persistency. Most of the companies that I do a large volumen of business with is in the 80's persistency.

I did have one comapny that I almost never wrote that fell down to 69% persistency. I haven't written anything with them in 2 years now so I don't even know what it's at now.

But there are exceptions on production ahd keeping high persistency. I know the top agent producer with RNA 2 years ago also had 94% persistency. Travis is a top producer with RNA and has 94% persistency with them.

I would be shocked if the average persistency for some of the top FE companies was over 70%.

 

[captain94]

My average agent runs at 18% loss that includes lapses, declines, and not taken. My worst agent only keeps 67% and he is on his last leg the company wants it higher or they will terminate his contract.

 

[TwiLight]

My opinion on persistency is that is good to have one...

Yes....RICK is my new hero.

 

[Ryan Caras]

we are pushing 76% as an IMO

carriers expect different numbers but as a rule of thumb anyone under 70% is on some sort of watch list...

my best advice to you is make sure after the sale you don't rush out of the house to fast... some of our agents that sell a lot of FE have lower numbers than the average producer because they are always on to the next sale or appointment.

 

[insurancecareer]

Aside from delivering the policy afterward, what contact do you keep with FE clients? Do you send a birthday or Christmas card? Stop in for a visit? Maintaining some sort of contact, just my opinion, would probably have them think twice before willingly cancelling. Bank drafts, as long as funds are sufficient, should keep them from cancelling due to non-payment.