2013 Survey of Lapse and Mortality Experience

The Society of Actuaries (“the SOA”) engaged RGA Reinsurance Company (“RGA”) to undertake a research project on level premium term life insurance products, with a particular focus on the magnitude and impact of the “shock lapse” at the end of the level premium period. This project is a follow-up to SOA-sponsored research completed by RGA in October 2009 and July 2010.

This report, authored by Tim Rozar, Jason McKinley, Andrew Stallmann and Susan Willeat, is the first of two phases. This phase includes a survey of the mortality and lapse assumptions used by actuaries for pricing and modeling level premium term products at the end of 2012. The report summarizes the findings from the 41 survey responses received. Where appropriate, results are also compared to the 2009 Phase 1 survey.

The second phase is currently in progress and includes a study of the mortality and lapse experience of level premium term policies as they transition out of the level premium period. Upon completion of phase two, a report incorporating the final results of the pricing assumption survey and the Phase 2 experience study will be prepared.

The SOA would like to thank the Project Oversight Group for their valuable contribution to this project.

  • Jeff Beckley, Chair
  • Tatiana Berezin
  • Brian Carteaux
  • Derek Kueker
  • Tony Phipps
  • Scott Rushing
  • David Wylde


2013 Survey of Lapse and Mortality Experience

Questions Or Comments?

If you have comments or questions, please send an email to research@soa.org.