Feldblum Personal Auto Question

[AnActualActuary]

I am confused, in two different parts of Feldblums reading he states:

"Drivers age 50 are already long-term risks. Persistency drops steadily from age 50 to age 70 as drivers stop driving because of poor health and old age."

and

"Retired drivers have very high retention rates."


Are these not contradicting each other? Or is it just saying that even though persistency drops steadily, it is still very high?

Or am I NOT comparing apples to apples as the first quote speaks of old age (ages 50 to 70), and the second quotes speaks of retired drivers? However, I would think these phrases speak of the same group.

Thanks for any thoughts.

[Vorian Atreides]

Originally Posted by AnActualActuary

even though persistency drops steadily, it is still very high.

I think this captures it.