IFAs recorded the highest persistency for whole of life policies – 82.7 per cent, up from 81.3 per cent over four years – while direct advisers’ persistency increased from 77.3 per cent to 79.7 per cent. IFAs also had higher persistency for other life policies, rising to 67.5 per cent from 64.2 per cent. Direct advisers’ persistency fell to 47.8 per cent from 50 per cent.
IFA persistency levels for personal pensions rose to 43.6 per cent from 40.6 per cent while single tied advisers saw persistency levels fall to 43.5 per cent from 45.1 per cent.
Persistency has plunged by 27 per cent for personal pensions since 1993. The FSA puts this down to the rise of group personal pensions, where group policies often lapse when people change jobs.