Understanding Policy Retention Ratio
How we calculate. Retention % = renewals ÷ renewals-due × 100. The form uses the same arithmetic as the worked examples on this page. See our methodology and accuracy policy.
Real-world scenario: A typical Policy Retention Ratio case uses renewed policies 880 and policies up for renewal 1000. Enter the same figures below to reproduce the worked path.
What is Policy Retention Ratio?
A persistency KPI for carriers and agencies. Premium retention can differ from policy count retention—label which you use.
- Same renewal cohort
- Policy count or premium—stay consistent
- Complement of lapse when definitions align
The Formula
Worked Example
Common Use Cases
- Book quality: persistency
- Agency scorecards: renewal success
- Pricing reviews: rate-change impact
Pro Tips
- Exclude mid-term cancels if policy says so
- Segment by product
- Pair with lapse rate
Limitations: Policy Retention Ratio results are educational insurance and agency planning aids—not underwriting, actuarial, claims, or financial advice. Confirm statutory definitions with your carrier, regulator, and finance teams.
FAQ
Policy vs premium retention?
This form is policy-count retention. Premium retention uses dollars in both fields—label reports accordingly.
What if policies up for renewal is 0?
Retention is undefined—enter a positive renewal-due count.
Authoritative References
For insurance ratio and reporting concepts, consult:
- NAIC — U.S. insurance regulatory resources
- Casualty Actuarial Society — actuarial education resources
- Insurance Information Institute — industry explainers