International Experience Study
The International Experience Study (IES) is a joint research venture of the SOA's International Section and Research Department, the International Actuarial Association, local actuarial associations and corporate sponsors to provide actuaries around the world with practical experience information in emerging markets. Without such data it has been difficult for actuaries to evaluate and illustrate business performance and/or market attractiveness to senior management.
In its infancy, the IES was a survey of multi-national company life insurance mortality and lapse experience and has evolved into national experience studies directed by actuaries from the data contributors located in the country under study. About 10 countries have already been studied with more than 50 companies and numerous volunteers contributing to this effort.
In performing an intercompany experience study in each country of interest, a working group of local actuaries is established to define the project scope and variables to be studied, review the research results and methodology and report its findings. The SOA's International Experience Study's Oversight Group works with the local country team during the process providing the team with technical guidance and assistance as needed including analyzing the data submitted by contributing companies in order to produce study results. Companies participating in the study receive a software tool to facilitate the data validation and submission process that can also be used by individual companies in their day-to- day operations.
The IES continues to expand into new countries as more and more companies are made aware of the project goals as well as benefits of participating in this initiative as outlined below.
Benefits to you and your company of participating in IES:
- SOA confidentiality procedures and technical support in performing an intercompany study
- a software tool for consistent exposure formulas and uniform output to facilitate the data collection process during the intercompany study
- a software tool to perform individual company studies for individual company product management
- a software tool, provided at no cost to you, with "built in" data validation to help actuaries with data analysis
- actuarial incentives–the mortality and other information gained from performing an intercompany or individual company experience study should lead to improved product pricing
- management incentives–the study results can be used for competitive benchmarking, setting expected values, identifying deviations within "normal" range and strategic planning including new market entrance
- regulatory incentives–the study results could be used as a resource for updating valuation tables; Solvency II; a resource for understanding variability between companies and over time (solvency management).
NOTE: Participating companies agree that their data will be combined with that of other companies and will be published.
If you would like to participate, contact:
Bill Horbatt, Chairperson IES Oversight Group, Horbatt@ActuarialConsortium.com or at 973.563.5197
Ronora Stryker, SOA Research Actuary, rstryker@soa.org or at 847.706.3614
IES Oversight Group Presentations:
View the March 2010 IES presentation made at the International Congress of Actuaries.
IES Study Results:
September 2006 Report
The September 2006 working group report contains survey data on a number of countries such as Argentina, Brazil, Poland, South Korea and Taiwan. More extensive mortality and persistency studies are reported on a national basis for some countries such as Argentina and Poland, where local actuaries have formed working sub-groups.