A persistent challenge

Persistency is a perennial problem for the European life and pensions industry. But with a new stream of sophisticated guaranteed products starting to emerge, and the adoption of risk-based embedded value, the industry might just be able to tilt persistency back in its favour

According to a recent survey1, 39% of UK life insurance investors are 'five years or less' policy switchers, while 39% of UK consumers who switch life and pensions provider do so again on the advice of their financial adviser. In Germany the majority, 59%, of retail buyers are five years or less policy switchers. So why is this a problem? The traditional way that insurers operate is to report new policy sales as if this is adding value to their business. But when you start to analyse the savings