Mass Lapse

2016 – IAIS – Risk-based Global Insurance Capital Standard Version 1.0
Disintermediation
Run – Triggers

Lawsuit – Fairbanks v Farmers
- Survey – 50%

Unfortunately, some offices issued these contracts with a cash value of something approaching the total single premium guaranteed at any time.
Interest rates rose, competitors offered better terms, and so there was a severe risk of mass surrenders, which no investment could have matched.

— Charles M. O’Brien – not a member of the Society, is a Fellow of the Institute of Actuaries and is actuary and manager, Royal National Pension Fund for Nurses, London, England

1974 – SOA – Expanding the Actuary’s Horizons in the Management of Investments for Long-range Risks, tsa74v26pt2dn7612 – Society of Actuaries – 58p