Description: Provides a review of the available lapse experience for lapse-supported Life and Long-Term Care products.

Description: Recent advances in mortality modeling have enabled applicant-specific quantification of mortality risk in life insurance applicants using laboratory and physical measurements. Relative to more conventional underwriting, this approach identifies a small population of significantly under-priced policy and a much larger, cross-subsidizing group whose risk is presently overestimated. Applicants placed in the highest percentile by this scoring methodology are more than 10X as likely to die in a given period as their demographic peers, and represent approximately 5% of short-term claims. Implications for product design are substantial in both the short- and long-term, as the possibilities for adverse selection grow, and the opportunity for fully individualized pricing raises the more distant prospect of products with as many rate classes as applicants.

Description: New developments in long term care reinsurance.

Description: Highlights of the 2001 Manulife Reinsurance Mortality Study conducted in conjunction with the Reinsurance Section on the mortality experience of large amount and older age policies.

Description: Feature article discussing the Life Settlements business: recent growth, pricing, and future of the business.

Description: Mortality Credibility and its use within VM-20.

Description: Update on Health Section research projects and topics, including new vision and mission statements for the Health Section Council, research and communications projects, and information about the Health Actuarial Research Initiative.

Description: The values of life insurance and annuity liabilities move in opposite directions in response to a change in the underlying mortality. Natural hedging utilizes this to stabilize aggregate liability cash flows. Our study shows empirical evidence that insurers who utilize natural hedging also charge lower premiums than otherwise similar insurers. This indicates that insurers who are able to utilize natural hedging have a competitive advantage. In addition, we show how a mortality swap might be used to provide the benefits of natural hedging to a firm that writes only one of the lines of business.

Description: This abstract describes a study that sets up an experience rating system to determine next year’s premium.

Description: This presentation shows how the the linear model is derived assuming that the force increases linearly over the year.