Research Projects – Risk Management
The Joint Risk Management Section is trying to develop better estimates of policyholder behavior in the tail (PBITT). The mission of the PBITT working group is to examine and ultimately give guidance to actuaries on how to set policyholder assumptions in extreme scenarios.
As part of its work, the PBITT working group issued a survey that gathered the range of assumptions actuaries use in pricing, reserving, and risk management of UL with Secondary Guarantees. The result of the survey can be accessed at the following link:
Policyholder Behavior in the Tail – UL with Secondary Guarantee Survey – 2008 Results
Thanks to the members of the PBITT working group for their help in issuing and reviewing the survey:
Special thanks to Stephen Hodges and Michael Altier for their analysis and drafting the report. The working group gratefully acknowledges all of the companies that participated in the survey.
If you have comments or questions, please send an email to