Premiums, Costs, Benefits and Values - Reputational Risk
- We believe current illustrated rates are much higher than what is reasonably expected over the course of the policy and may lead to consumer disappointment, which could negatively impact the entire industry.
-- Metropolitan Life Insurance Company, New York Life Insurance Company and Northwestern Mutual Life Insurance Company
2014 0812 - Letter to LATF - IULISG – Indexed Universal Life Illustrations Subgroup – NAIC
- Q101. Are there examples of other instances for which an extension of management actions to allow for the recognition of premium adjustments may be appropriate? Please explain.
(Section 6.5.3.1)- ACLI believes that rate actions such as COI increases should be allowed.
- We understand that rate actions might precipitate other policyholder actions such as increased lapses and possibly reputational risk.
- Such policyholder behavior sensitivity could be captured by reasonable dynamic lapse assumptions.
- ACLI believes that rate actions such as COI increases should be allowed.
2016 1018 - ACLI to IAIS - FINAL_ACLI response to the IAIS Insurance Capital Standard consultation (Version 1.0) - 16p