Experience Studies Pro

The Society of Actuaries (SOA) Research Institute and LIMRA have jointly conducted a study of 2009-2023 Term Conversion Incidence, Mortality, and Lapse and Post-Conversion Mortality and Lapse Experience. It is an update to the Report on the Conversion Experience Study for the Level Premium Term Plans previously completed in 2016 and covering experience for calendar years 2000-2014.  Seventeen companies contributed data to the current study. This study of 2009-2023 calendar years contains 63.6 million in policies exposed, $31.4 trillion in face amount exposed, and over 600,000 conversions of term policies and 6.2 million in policies exposed and $955.8 billion in face amount exposed of converted permanent policies. 

The Society of Actuaries (SOA) Research Institute’s Individual Annuity Experience Committee (IAEC) and LIMRA have jointly conducted a study of Variable Annuity (VA) and Registered Index-Linked Annuity (RILA) Behavior covering contracts having contract anniversaries in 2022, 2023, and 2024. Seventeen companies contributed data to the current study, encompassing approximately 48% of new premium for VAs and RILAs and 39% of general and separate account reserves associated with VAs and RILAs during the period of the study. The current study of 2022-2024 observation years contains about 11.5 million contract count exposed, $1.5 trillion in contract value exposed, and over 625,000 surrenders. It also contains data on four million contract withdrawals and $56.7 billion in contract value withdrawn.

The Society of Actuaries (SOA) Research Institute’s Individual Annuity Experience Committee (IAEC) and LIMRA have jointly conducted a study of fixed-rate deferred annuity surrender experience covering calendar years 2023 and 2024. This is an update to the prior study covering calendar years 2015-2022. Twenty-four individual companies contributed data to the current study, encompassing approximately 65% of industry new sales by premium. The current study contains about 4.8 million surrender exposure by contract count, $612 billion surrender exposure by contract value, and over 567,000 surrenders.

The Society of Actuaries (SOA) Research Institute’s Individual Annuity Experience Committee (IAEC) and LIMRA have jointly conducted a study of Fixed Indexed Annuity (FIA) contract owner behavior covering observation year 2023. Seventeen individual companies contributed data to the current study, encompassing 57% of industry new sales and 58% of industry assets in force during the period of the study. The current study contains about 2.7 million surrender exposure by contract count, $328 billion surrender exposure by contract value, over 208,000 surrenders, and $13.0 billion in contract withdrawals. The experience data analyzed for this study includes both single- and flexible-premium products, and contracts are included regardless of whether or not they have a guaranteed lifetime withdrawal benefit (GLWB) rider or other type of guaranteed living benefit.

LIMRA and the Society of Actuaries (SOA) Research Institute have completed the most up-to-date study of group long-term disability claim incidence. Nineteen individual companies contributed data to the current study, encompassing 97% of the industry. The current study of 2015-2022 calendar years contains about 294 million life-years exposed and about 1.2 million claims over the study period. The results include analysis of claim incidence and can be used by actuaries in the management of their own group long-term disability business.

LIMRA and the Society of Actuaries (SOA) Research Institute have completed the most up-to-date study of term/whole life lapse/surrender. Twenty-eight companies contributed data to this Study, covering the seven-year period from policy anniversary in 2015 to policy anniversary in 2022. The Study contains about 135.9 million policies exposed, 5.4 million surrenders and lapses, $30.6 trillion in face amount exposed, and $1.4 trillion surrenders and lapses by face amount.

LIMRA and the Society of Actuaries (SOA) Research Institute have completed the most up-to-date study of group life experience. Sixteen companies contributed data to this Study, which encompasses over 100 million exposures by headcount, over 186,000 life insurance claims, and over 39,000 incidences of waiver of premium in the 2013 to 2021 observation years. The results include breakdowns for Basic Life, Supplemental Life, and Portability coverages and analysis for Life Insurance, Waiver of Premium, and Accidental Death & Dismemberment claims.

LIMRA and the Society of Actuaries (SOA) Research Institute have completed the most up-to-date study of fixed indexed annuity policyholder behavior. Twelve companies contributed data to this Study, which encompasses about 4.8 million surrender exposure by contract count, $526 billion surrender exposure by contract value, over 227,000 surrenders, and $15.9 billion in withdrawals in the 2021 to 2022 observation years.

The results include comparisons to several expected bases of policyholder behavior, including the current valuation standard, and can be used by actuaries in the management of their own fixed indexed annuity business.

Universal Life Premium Persistency
Fourteen companies contributed data to the current study, encompassing approximately 50% of flexible premium universal life new sales market share during the period of the study. The current study of 2015-2021 calendar years includes 11.9 million in exposure by policy count, almost $4.0 trillion in exposure by face amount, $76.5 million in collected premium, and approximately 417,000 lapse/surrender terminations.

Universal Life Lapse and Surrender
Twenty-four individual companies representing approximately 80% of the market contributed a robust set of universal life insurance policy owner behavior experience data for this study. About 33.5 million policy-years of exposure, $8.5 trillion in face amount exposure, and 1.3 million lapse terminations have been cleansed, summarized and analyzed.

LIMRA and the Society of Actuaries (SOA) Research Institute have completed the most up-to-date study of fixed rate deferred annuity surrender experience. Twenty-three companies contributed data to the current study, encompassing approximately 45% of fixed rate deferred annuity market share during the period of the study. The current study of 2015-2022 calendar years contains about 13.4 million contract count exposed, $1.0 trillion in contract value exposed, and over 900,000 surrenders. The results include analysis of surrender rates and can be used by actuaries in the management of their own fixed rate deferred annuity surrender business.

LIMRA and the Society of Actuaries (SOA) Research Institute have completed the most up-to-date study of variable annuity contract owner behavior. Fifteen companies contributed data to the current study, encompassing approximately 64% of industry new sales and 61% of industry assets in force during the period of the study. The current study of 2019-2021 observation years contains about 10.5 million contract count exposed to surrender, $1.4 trillion in contract value exposed to surrender, and over 500,000 surrenders. It also contains data on 3.7 million contract withdrawals and $41 billion in contract value withdrawn, which have been cleansed, summarized and analyzed. The results include analyses of withdrawal rates, surrender rates, and additional premium deposited and can be used by actuaries in the management of their own variable annuity business.

LIMRA and the Society of Actuaries (SOA) Research Institute have completed the most up-to-date study of fixed indexed annuity contract owner behavior. Seventeen parent company groupings covering 20 individual companies and representing 64% of industry new sales and 61% of assets in force contributed a robust set of fixed indexed annuity contract owner behavior experience data for this study. About 4.9 million surrender exposure by contract count, $503 billion surrender exposure by contract value, over 195,000 surrenders, and $13.7 billion in withdrawals have been cleansed, summarized and analyzed in the 2019 to 2020 observation years. The results include analyses of withdrawal rates, surrender rates, and additional premium deposited and can be used by actuaries in the management of their own fixed indexed annuity business.

This experience study examines individual payout annuity mortality experience for calendar years 2014 through 2019. The study is based on an analysis of about 4.3 million contract-years of exposure, $33.6 billion annual income-years of exposure, and over 236,000 deaths over the six-year study period. The previous study encompassed about 4.5 million contract-years of exposure, $26.8 billion annual income-years of exposure, and over 230,000 deaths over a five-year study period.