Description: This paper outlines the limitations inherent in current actuarial pricing techniques and describes a macro pricing process for product development that can produce optimal decisions in competitive environments. A discussion of the paper follows. From Transactions of Society of Actuaries 1991, Vol. 43.

Description: Gross premium calculation methods may be arbitrarily separated into: a- Type 1 methods those which initially have commissions and other per cent of premium expenses in the denominator and b- Type 2 methods those which initially have commissions and other per cent of premium expenses in the numerator. The traditional Type 1 methods directly calculate the gross premium. The purpose of this paper is: 1. to present a Type 1 method of gross premium calculation which does the following: a Incorporates the cost of reinsurance into the gross premium calculation and may be shown as a level annual cost over the gross premium calculation period. b Calculates the effect on profit margins of a change in the retention limit without redoing the original calculation. c Calculates the premiums needed to break even e.g., amortize the initial investment in surplus at the end of each policy year as a by-product. d Calculates the profit or loss generated in each policy year or over any number of policy years for any gross premium without redoing the original calculation or first using a trial gross premium. e Directly solves for the gross premium that will produce any specified profit over any number of policy years without redoing the original calculation or first using a trial gross premium. f Directly solves for the premium that will produce a specified yield on surplus invested in new business by a flexible technique not first involving the use of the renewal net premium or any other preliminary gross premium. 2. to provide a mathematical definition of a financially meaningful average policy size which recognizes the cost of reinsurance. 3. to provide for mathematical definitions of common measures of profit, and the mathematical relationships between them. 4. To establish formulas expressing the effect of changes in various assumptions used in the gross premium calculation as a lev

Description: In this paper a model of term insurance experience is constructed on the basis of mortality classes theory and utility theory. The model generates a complete set of mortality, withdrawal, and conversion rates on term insurance and of mortality rates on converted policies . The resulting decrement rates can be used in a Jenkins-type formula to calculate gross premiums.

Description: This is a discussion of the paper, A General Method of Calculating Experience Net Extra Premiums Based on the Standard Net Amount at Risk by Walter Shur.

Description: Discusses the use of allocated and marginal expenses in pricing life insurance products.

Description: The impact of the underlying mortality table selected as a basis for projecting mortality results

Description: This paper deals primarily with the actuarial aspects of a life insurance product providing complete flexibility in the pattern of premium payments- and benefits. This paper presented a framework around which a policy of the life-cycle family can be built. Discussion includes description of how the product might work, given the legal and operational constraints at the time. Also discussion of how compliance with the Standard Valuation Law and Standard Non forfeiture laws would be achieved. Followed by submitted discussions of the paper by various people

Description: An increasingly popular tool in estate planning is the Joint Life policy payable upon the second death. The design and pricing of this policy is influenced significantly by cash value and reserve requirements. This article discusses two methods for calculating these values.

Description: This paper will show that the result of using the 1975-80 select/ultimate table, as opposed to the more modern 1990-95 select/ultimate table, can be a significant understatement of future mortality and hence anticipated profits may prove to be illusory.

Description: A discussion of the need to search for alternative mortality tables other than the 1975- 80 and 1990-95 tables to use as the base table, which may be more appropriate for a particular company or specific products.