Product Development Research
2024
Searching for Simplicity: Using Behavioral Science to make Life Insurance Product Information Simple and Effective
The research presented in this paper provides practical behavioral insights insurers can use to help narrow the customer comprehension gap of life insurance products and creates a direction for future industry research. The research shows that simplifying language and removing friction is not enough to improve comprehension: Increasing the salience of key information and using positive friction techniques has significantly greater impact.
The Risks of Change in the Insurance Industry: Adapting to the “New” New Normal
In March of 2020, the global economic order was shaken by the advent of the novel coronavirus pandemic. Months into the pandemic, commentators began speaking of a so-called ‘new’ new normal’ as citizens adjusted to the cultural and business changes. In a constantly changing world, the concept of a ‘new’ new normal refers to that which is different from what was experienced in the past and is now becoming the norm.
Statistical Methods for Imputing Race and Ethnicity
This paper describes a range of techniques for developing probabilistic estimates or predictions of individual race and/or ethnicity. The authors apply some methods to data from an insurance application and compare them with a focus on relative accuracy and potential bias. Lastly, the authors apply some of these methods to a simulated dataset to illustrate how to use them in practice.
Updating the Canadian Mortality Data Through 2021 in the Human Mortality Database and the Canadian Human Mortality Database
Through a financial contribution from the Canadian Institute of Actuaries and the Society of Actuaries, the Canadian mortality series in the Human Mortality Database (HMD) has been updated to include revised data for 2017-2019 and new data for 2020 and 2021. The same data was used to update the Canadian Human Mortality Database (CHMD). This report presents the background and processes for extending the data series in each of the databases.
Redesigning the Life Insurance Underwriting Journey with Behavioral Science
This study demonstrates that applying the principles of behavioral science to the design of underwriting questions improves disclosure across a range of conditions and behaviors that are relevant to underwriting decisions. In the context of the shift towards accelerated underwriting in the insurance industry, behavioral science question design offers a way to collect better information through the application form.
2023
Perceptions of Younger Generations on Risk and Insurance
This study aims to explore the evolution of and trends in how consumers from younger generations understand, investigate, and purchase private insurance plans.
2023 Credit Disability Study Report – An Update of the 2014 SOA Study
This study was undertaken to ensure the ongoing adequacy of the modified 1985 CIDA table as specified in Valuation Manual Section VM-26 for single premium credit disability insurance. In addition, the shift in the distribution of sales by term between contracts issued in previous study periods to 2017 and 2021 was analyzed.
2022 Accelerated Underwriting Practices Survey Report
Sponsored by the Marketing & Distribution, Product Development, Reinsurance and Smaller Insurance Company sections, the purpose of the study was to not only determine how practices have changed, but also how they have changed because of COVID-19.
2022
Mortality Improvement Trends
Using results from a literature review and data from the U.S. Census Bureau that spans 1985-2015, the authors analyzed mortality improvement patterns across key variables and causes of death. Results of the research quantify differences in mortality improvement between key socioeconomic groups and demonstrates how they change over time.
Mortality by Socioeconomic Category in the US
This SOA-sponsored research report presents mortality analysis and rate estimates for the United States by year from 1982 through 2019, separately by socioeconomic quintile and decile. Details on the development of the estimates are summarized in the report.
2021
Obesity Trends and the Impact on Morbidity and Mortality Costs
This report examines the latest trends in obesity and an estimate of the impact of obesity on mortality and morbidity costs in the U.S. and Canada.
Interstate Variations in Mortality in the United States, 1959-2018
Using recently updated data from the United States Mortality Database, this report presents an overview of historical mortality trends in all 50 U.S. states and the District of Columbia for the period 1959-2018.
2020
Mortality By Socioeconomic Category
This research report presents mortality analysis and rate estimates for the United States by year from 1999 through 2018, separately by socioeconomic quintile and decile.
Life Reinsurance Treaty Recapture Provisions
The Society of Actuaries Reinsurance Section and the Product Development Section are pleased to make available a report examining life reinsurance treaty recapture provisions.
2019
Living to 100 Insights on the Challenges and Opportunities of Longevity
Report on Living to 100 Insights on the Challenges and Opportunities of Longevity.
Accelerated Underwriting Practices Survey
The Reinsurance Section, Product Development Section and the Committee on Life Insurance Research are pleased to present results from a company practice survey of individual life insurance accelerated underwriting.
Application of Credibility Theory in the Canadian Life Insurance Industry
The Society of Actuaries’ Product Development Section, Financial Reporting Section, Committee on Life Insurance Research and the Canadian Institute of Actuaries announce the release of a new Application of Credibility Theory in the Canadian Life Insurance Industry research report.
A Machine Learning Approach to Incorporating Industry Mortality Table Features into a Company’s Insured Mortality Analysis
The Product Development Section, the Modeling Section, the Reinsurance Section and the Financial Reporting Section announce the release of a new research report that introduces a novel framework for leveraging the “architecture” of an industry mortality table within a company’s predictive analytics-based insured mortality analysis.
The Use of Predictive Analytics in the Canadian Life Insurance Industry
The Canadian Institute of Actuaries and Society of Actuaries Committee on Life Insurance Research, the Product Development Section and the Financial Reporting Section, sponsored this study investigating how the Canadian life insurance industry is utilizing predictive modelling.
Modeling and Forecasting Cause-of-Death Mortality
The Product Development Section, the Financial Reporting Section, the Modeling Section and the Committee on Life Insurance Research are pleased to present new research on modeling and forecasting cause-of-death mortality.
Considerations for Predictive Modeling in Insurance Applications
This report includes a review of existing literature and current industry practices, as well as a comprehensive set of considerations for predictive modeling in insurance applications.
Practical Analysis of PBR Mortality Credibility for Term Insurance
Report on the impact mortality credibility has on principle-based reserves.
2018
Mortality Analysis of 1898-1902 Birth Cohort
Report on the mortality analysis of 1898-1902 birth cohorts.
The Impact of Genetic Testing on Life Insurance Mortality
This research explores genetic testing and U.S. life insurance mortality.
Survey of Waiver of Premium/Monthly Deduction Rider Assumptions and Experience
This paper summarizes the results of a survey of waiver of premium/monthly deduction rider assumptions and experience.
2017
Understanding VM-20 Results
This report examines options for analyzing periodic changes in VM-20 reserve amounts.
Impact of VM-20 on Life Insurance Product Development
This study uses case studies for term and universal life products to examine the changes to the product development process as a result of VM-20.
Understanding the Product Development Process of Life Insurance and Annuity Companies
This study examines global product development (PD) practices of life insurance and annuity companies.
Predictive Models on Conversion Studies for the Level Premium Term Plans
This report explores conversion rates and post-conversion experience using predictive analytics.
Actuarial Model Governance: A Survey of Actuarial Modeling Governance and the Industry Evolution Report
This study is an update of an initial 2012 study examining the current state of actuarial modeling controls within U.S. and Canadian life insurance and annuity companies.
2016
Report on the Conversion Experience Study for Level Premium Term Plans
This report summarizes the combined results of a multi-phase study on term conversions.
Nested Stochastic Modeling for Insurance Companies
A company survey on the use of nested stochastic modeling and an analysis of ways to reduce run time and improve the efficiency of nested simulations.
PBA Implementation Guide
This research report provides a better understanding of the key considerations an insurer would encounter in making a principle-based framework for determining reserves and risk-based capital (PBA) a reality.
Optimizing Risk Retention
This research paper outlines a method of deriving assumptions for modern reserving and solvency capital requirements from a company's own data which can be utilized to measure the impact of reinsurance on reserves and capital of a life insurer.
Predictive Analytics Essays
These articles provide examples of how actuaries are using predictive modeling in practice.
2015
Transition to a High Interest Rate Environment: Preparing for Uncertainty
This report focuses on the impact of interest rate volatility on life insurance and annuity products.
Earnings Emergence: Insurance Accounting under Multiple Financial Reporting Bases
This report provides illustrative examples of how various accounting regimes apply to a range of insurance contracts.
Report on 2014 VBT/CSO Impact Study: Considerations for Life Insurance Products
This report is on the implications of 2014 VBT/2017 CSO Impact Study.
Extreme Events for Insurers: Correlation, Models and Mitigation Study
This paper covers the complete cycle of extreme event risk management, from identifying experience data sources, to extreme event detection, to modeling and dependence analysis and finally to monitoring and mitigation.