Definitions for "Lapse Ratio"
Surrenders and lapses as a percentage of average insurance in force for the year.
The face amount of in-force business that lapses in a given year, expressed as a percentage of in-force business at the beginning of the year. In certain circumstances, this ratio is expressed for the number of policies that lapse without reference to the face amounts of lapsed policies.
The percentage of insurance (face amount) lost by the company (other than through death claims) in a given year against the total face amount value at the beginning of the year.