What is the meaning of term "RETENTION" in cntext wth insurance? -

Two different meanings - as indicated by the other people, it means what percentage of policies renew every year. HOWEVER, it can also mean, how much of an insurance claim you pay yourself, before the policy kicks in - like a "self insured retention". Somewhat similar to a deductible, but you have to pay it first. **And I'm in AWE at Sue's 97% retention rate.** Retention is the percent of policies you keep. So, very simplified, you start the year with 100 policies, you lose 10 policies during the year, you are left with 90 policies, so your retention is 90%. Another example would be, you start with 100 policies, you lose 20 policies over the year but write 10 new ones, you end up with 90 policies at the end of the year, so your retention is still 90%. The higher the retention, the better your book of business is considered to be. Our retention tends to be 95-97% in our office, which is excellent. keeping your business with the company on renewal date