Study of the Impact of Covid Pandemic on the Persistency of Life Insurance Business in India.

Non-payment of renewal premium within a specific time under a life insurance policy result in lapsation of the contract discontinuing life cover of the life assured. The lapsation happening just within a short period of time after issuing a life insurance policy causes the major loss to all the stakeholders in the life insurance ecosystem. Hence, persistency of insurance policies is a critical aspect of life insurance business, and every life Insurer is interested in maintaining it to higher levels. In India, the impact of a pandemic on persistency of life insurance in not yet represented well in literature. This study analyses the available secondary data to understand how policy persistency was impacted during the covid pandemic. The study also attempts to analyse primary data collected from the consumers to assess their perception towards the timely payment of premium and the need of life insurance during this pandemic. The analysis shows that there was an impact of the covid pandemic on the persistency of life insurance policies as well as the perception of people towards the enhanced need of life Insurance during the pandemic. Future long-term studies in this area may help analyse the exact nature and retention of the positive impact of a pandemic to help the life insurers to improve their policy persistency. [ABSTRACT FROM AUTHOR]