Policyholder Behavior in the Tail Risk Management section Working Group UL with Secondary Guarantee 2009 Survey Results

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:

The PBITT Working Group would encourage and welcome comments, questions, and suggestions. Please send them to either James Reiskytl at jimreiskytl@wi.rr.com or Steven Siegel at ssiegel@soa.org.

Thanks to the members of the PBITT working group for their help in issuing and reviewing the survey:

  • Jim Reiskytl, Chair
  • Stephen Hodges
  • Dale Hagstrom
  • Peter Bondy
  • Cliff Angstman
  • Steven Siegel, Staff Liaison

Special thanks to Stephen Hodges and Brian Grinnell for their analysis and drafting the report. The working group gratefully acknowledges all of the companies that participated in the survey.