Report on the Conversion Experience Study for Level Premium Term Plans
The Reinsurance Section, Product Development Section and the Committee on Life Insurance Research announce the release of a new report summarizing the second phase results of a multi-phase study on term conversions. Lindsay Meisinger, Mark Ma, Donna Megregian, and Kyle Proebsting of RGA performed an experience analysis of level term business as it transitions into the converted policy. Participating companies were asked to provide policy level inforce and termination records so that experience results could be analyzed at a granular level including, but not limited to, age, gender, risk class and policy size. This report summarizes the combined results from the participating companies. For purposes of this study a term conversion is when an individual term insurance policyholder exercises the option to convert to a permanent plan without underwriting.
The Phase 1 report is also complete and summarizes the results of a survey of the assumptions and product features used by companies for pricing and administering term conversion privileges.
The Sponsors would like to thank the companies that participated in the study and the following individuals who served on the Project Oversight Group:
Tom Edwalds, Chair
Jack Luff, SOA Experience Studies Actuary
Ronora Stryker, SOA Research Actuary
Jan Schuh, SOA Sr. Research Administrator
If you have questions or comments on this research, please contact Ronora Stryker, SOA Research Actuary, at email@example.com.