Understanding Policy Retention Ratio
How we calculate. Retention % = renewals ÷ renewals-due × 100. 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
| Scenario | When to use |
|---|---|
| Percent of a number | Finding a part of a whole (tax, tip, score) |
| Percent change | Comparing old vs new values |
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.
Common mistakes
- Swapping part and whole: The denominator must be the full total, not a subset.
- Rounding too early: Carry extra decimal places through multi-step work before rounding the final percent.
- Mixing percent and decimal forms: Enter rates in the format the calculator labels expect.
The worked example for retention ratio was verified with the calculator form on this page—enter the same values to confirm the result.
When to use this calculator
- Use this page when your wording matches retention ratio and the form labels on screen.
- Use percent of a number for “what is X% of Y?” problems.
- Use number is what percent when you know part and whole and need the percent.
Still unsure about retention ratio? Start with the quick answer above, then open the linked calculator that matches your wording.
❓ Frequently Asked Questions
How do I use this retention ratio calculator?
For retention ratio, enter the values labeled on the form, then press Calculate. Compare the result to the worked example on this page.
What formula does this page use?
See the quick answer and formula box above for retention ratio—the same percentage calculator expression is applied to your inputs.
What if my result looks wrong?
When checking retention ratio, re-check part vs whole (or rate vs base), rounding, and whether percents were entered as 25 rather than 0.25 when the form expects percents.
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