A
act_stu
Member
When working out the actual withdrawal experience for a year, would we only look at number of pols in-force (IF) at start of year and then look at how many of those pols are still IF at the end of the year - then divide the latter by the former to get a persistency rate?
For example: if there are 10 pols IF at start of the year and all of those 10 are still IF at the end of the year, will the persistency rate be 100% and so withdrawal rate be 0%?
What about if there were 5 new pols during the year and and all of those 5 withdrew before the end of the year?
I read the non-core reading but did not fully understand it. Could you please help me out here with a numerical example?
Cheers
May be I could check how it is actually done in the experience analysis team in office!!
For example: if there are 10 pols IF at start of the year and all of those 10 are still IF at the end of the year, will the persistency rate be 100% and so withdrawal rate be 0%?
What about if there were 5 new pols during the year and and all of those 5 withdrew before the end of the year?
I read the non-core reading but did not fully understand it. Could you please help me out here with a numerical example?
Cheers
May be I could check how it is actually done in the experience analysis team in office!!