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From the SOA Sessions: Together We Progress

Society of Actuaries kicks off its annual meeting & exhibit

by P.E. Kelley

Mr. Kelley is managing editor of Advisor Magazine and L&HA e-newsLink. Connect with him by e-mail: [email protected]

 

Second in a series of reports from the Society of Actuaries Annul Conference in Orlando, FL., October 26 – 29, 2014.

Orlando FL. – The Society of Actuaries kicked off it annual meeting and exhibit in Orlando, Florida Sunday with a message of unity and progress. The event, which is hosting more than 2,000 members, will showcase the organization’s progress on many levels: for the profession, for the business that it supports and for society in general.

Streaming Live: Society of Actuaries Annual Meeting: Orlando- October 26-29

The sessions will bring hundreds of industry experts together to share ideas on a the reach of the Society throughout this industry, which began with three different evening networking events, each focused upon specific themes: Product Development & Marketing & Distribution; Reinsurance and Forecasting & Futurism.

General Sessions

  • Mortality
    One of Monday’s more analytical meetings was a presentation by Andrew J. Peterson, FSA, EA, FCA, MAAA, which was based upon a ‘Mortality in the United Kingdom’ study. He was joined by Adrian Gallup, of the Office for National Statistics, along with Stephen C. Goss, ASA, MAAA and Jean-Claud Menard, FSA, FCIA.The presentation focused upon historical actuarial trends and mortality assumptions in the 2012-based population projections, while considering State pension age and life-expectancy by socio-economic class. In the UK, for example, the study shows life expectancy to have grown from age 40, in the year 1841, to age 82 in 2011. Looked at from another perspective, the expectation of life beyond age 65, according to the study, reveals a growth of about 10 years in 1841 to about 22 years today.Other statistical data presented looked at the leading causes of death for the year 2012, comparing that of men to women. The leading cause of death for men was heart disease, 15.6%, while for women it was dementia and Alzheimers, 11.5%. Conversely, dementia and Alzheimers in men was the least leading cause of death, 5.8%.Overall, the study looked to project new assumptions for the 25th year of projection, or 2037, with , for example, assumed mortality improvements of 1.2% a year for all ages, males and females.
  • Indexed UL ‘Deep Dive’This analysis of the growth of the universal life market shows a decade of rapid and significant upward growth. Since 2002, IUL production has grown from $200,000,000 to more than $1,200,000,000. Total IUL sales repesented 39% of universal life sales during 2013 and 14% of total individual life premium overall.As if to undersacore these numbers, the study revealed that the number of carriers has grown as well during the same period: from about ten in 2002 to more than45 today.Emerging trends in the IUL market focus on innovation in credit mechanics; a resurgence in protection; added living benefits, such as LTCi riders, accelerated benefits and even quit-smoking incentives; COI charge reductions; VUL with indexed crediting and statutory & GAAP reserving, with emphasis on FAS 133 and AG 36.
The leading cause of death for men was heart disease, 15.6%, while for women it was dementia and Alzheimers, 11.5%. Conversely, dementia and Alzheimers in men was the least leading cause of death, 5.8%.

 

Tuesday’s sessions will feature a full slate of meetings, including a morning session that looks at Tail Risk Hedging, presented by Jeff Burt, executive vice president of HLR America and Michael DiPalma, CIO-Tail Hedging for AllianceBernstein.