Non-Traditional

  • The obvious question that springs to mind when asked to consider non-traditional life products is what is meant by "non-traditional"?
  • Upon reflection, virtually every product of significance in today's market can be termed non-traditional in one way or another.

-- Trevor C. Howes

1984 - SOA - Non-Traditional Life Insurance Products--Canada, Society of Actuaries - 28p

  • Let us agree on our terms.
    • What I mean by traditional life policies is the life insurance product stereotypes.
    • A stereotype policy is one which is indivisible and wholly defined, by its terms, at issue.

--  George R Dinney

1982 - SOA - Programs to Conserve Traditional Life Insurance Policies, Society of Actuaries - 18p

  • (p34) - With respect to NT products, the investment guarantee products, and the universal insurance are all systematic trigger factors.
  • [Bonk: NT =non-traditional]

2020 02 -  SOA - Systemic Risk in China’s Insurance Industry, Society of Actuaries - 55p

  • 3.2 Non-traditional and non-insurance business activities
    • 28. In contrast, there are business activities that either deviate from, or miss entirely some of, the criteria mentioned above.
    • In life insurance, for example, noninsurance features, such as different types of guarantees or the absence of penalties for early surrenders, have been added to traditional products.
      • These non-traditional features materially change the risk profile of the combined product.
    • Similarly, life insurance products with savings and investment features are characterised as non-traditional by a number of supervisors.
    • As for reinsurance, the underwriting of reinsurance contracts is a traditional function.
      • However, reinsurance contracts with limited or no risk transfers can change the risk profile, making at least part of the insurance business non-traditional or even non-insurance.

2011 11 - IAIS - Insurance and Financial Stability - 47p

  • At your June meeting, your task force received a draft of a proposed revision of the NAIC Life Insurance Solicitation Model Regulation.
    • This proposal would incorporate the following new features into the model regulation:
    • 2. A special plans section to accommodate the unique features of nontraditional plans such as universal life insurance.

--  Statement on Behalf of the American Council Of Life Insurance (ACLI To The NAIC (A) Committee's Life Cost Disclosure Task Force - November 29, 1982 - p523

1983-1, NAIC Proceedings

  • Finally, there are issues of adequacy.
    • Are the state guarantee funds adequate to deal with a major failure?
    • I don't believe that Executive Life was a major failure.
    • I believe that there are major failures waiting for us, because of the life insurance industry's switch from the product that it was selling.
    • When I was taking actuarial exams, the product that was being sold was the guarantee about human mortality.
    • That was what we sold then, and now we're selling investments.
      • We're selling universal life, and we're selling GICs.
      • These have very little to do with what we originally started from, and what the industry built on.
  • Now we're competing with banks and brokerage houses and stock markets for investment dollars.

--  James A. Kenney, Consulting Actuary, Coates and Kenney Associates in Berkeley, California

1992 - SOA - Is There Life After Executive Life? Retirement Plan Participants and The Guarantees Of Insurance Companies, Society of Actuaries - 22p