2014 Post Level Term Lapse & Mortality Report*
Experience Studies – Individual Life
The Society of Actuaries (SOA) sponsored a report on level premium term life insurance products. The SOA enlisted the services of RGA Reinsurance Company to undertake the project which focuses on the magnitude and impact of the lapse and mortality at the end of the level premium period.
This report is a follow-up to SOA-sponsored research completed by RGA in October 2009, “ Report on the Survey of Post-Level Premium Period Lapse and Mortality Assumptions for Level Premium Term Plans,” and in July 2010, “ Lapse and Mortality Experience of Post-Level Premium Period Term Plans.” This two-phase project will be of significant importance to pricing and product development actuaries, risk managers, and financial reporting actuaries.
A zip file of two Excel files that contain additional materials from the study has also been provided. “SOA Post-Level Term Lapse and Mortality Study.xlsx” is a spreadsheet that contains both the lapse and mortality study pivot tables which allows for custom analysis of the data underlying the Post-Level Term Report. “SOA Post-Level Term Multivariate Lapse Rate Model.xlsx” is a spreadsheet that contains the details for both multivariate models provided in the final report and allows for customized analysis of the models.
*A revision of the study was published in May 2014 to reflect a change to the confidence interval calculation found on page 8 and presented in the charts in the “Mortality Deterioration” section of the document.
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