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By Darren Behar and James Moore

Life offices have delivered a stinging attack against the PIA&#39s calculations for persistency rates, claiming they distort the true picture by up to 10 per cent.

The attack comes just two weeks after the PIA threatened to clamp down on life offices and advisers with poor persistency records.

The PIA&#39s latest figures for regular-premium pension policies sold by company reps in 1995 show a persistency rate of just 85.5 per cent after one year.

But many life offices feel that the figures do not represent a true picture of how many investors lapse.

They are urging the PIA to change its definition of lapsed policies to take account of premium holidays.

Scottish Life marketing consultant Alasdair Buchanan says: "The figures are misleading at the moment. People on a premium holiday get caught and so the true situation is not reflected The PIA is ignoring the problem."

National Mutual marketing manager Stephen Phillips says: "Unfortunately, the figures include different things from different people.

"We need to proceed with caution when analysing the figures."

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