What Does Lapse Ratio Mean?

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What does Lapse Ratio mean? Read on to discover the definition & meaning of the term Lapse Ratio - to help you better understand the language used in insurance policies.

Lapse Ratio

Lapse Ratio

A lapse ratio, or expiration ratio, is the ratio of policies issued by an insurance company at a certain time that are not renewed compared to the total number of policies issued during that same period. This ratio is an indicator of how well a company is able to retain a healthy number of policyholders.

We hope the you have a better understanding of the meaning of Lapse Ratio.

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