Pricing

  • It's tough to price in a very disciplined way when any fly-by-night company can come by and undercut you.
  • Somebody could take a flier and come out with a product with a low rate and if it works out they benefit, if it doesn't work out we pay the cost.

--  Michael Davlin

1985 - SOA - Actuarial Pricing Assumptions in a Volatile Environment, Society of Actuaries - 32p

  • Pricing, to the actuary, involves the determination of charges related to a set of benefits.

--  Robert P. Hill

1990 - SOA - Adequacy of Pricing Considerations, Society of Actuaries - 18p

  • Abstract: Traditional life and health products have long been regarded as non-interest sensitive.
    • Pricing has often been done with only a single interest scenario projection.

2007 0913 - SOA / Milliman - Interest Rate Hedging on Traditional Life and Health - A Research Project with the Society of Actuaries - 39p

  • 1986 - SOA - What Have We Done to Ourselves? A Discussion of Current Pricing Philosophy, Society of Acturies - 36p
  • I would hate to see Universal Life, a product which l have a great deal of appreciation for, tainted by an approach in the marketplace which does not disclose the true nature of the actuarial pricing.

--  Thomas F. Eason 

1983 - SOA - Individual Life Insurance, Society of Actuaries - 22p

  • I want to begin discussing repricing of traditional life insurance by making some general comments about pricing, not just repricing but all kinds of pricing.
    • I believe very strongly that while the actuary plays an important role in pricing, pricing is a management's responsibility.
    • The actuary must communicate with the other members of management on pricing.

--  Albert E. Easton

1992 - SOA - Repricing the In-Force Book of Business, Society of Actuaries - 16p

  • Critical to this approach is the assumption that companies will price their product in a rational manner.
    • Unfortunately, not only is illogical pricing an academic possibility, it has become reality for some companies and products.
    • An excellent example is a "Modified Premium Whole Life" type plan under which ultimate premiums purport to be ''whole life" premiums but which actually are set simply to be sufficiently high relative to premiums in prior years that minimum values will be as low as desired and deferred as long as desired.

To: NAIC (C) Committee Technical Task Force
From: Bradford S. Gile, A.S.A., M.A.A.A., Life and Health Actuary - State of Wisconsin Dept. of Insurance - October 17, 1979
(ATTACHMENT F)  - re: Nonforfeiture Values for Life Insurance Contracts Having Prerniums'which Vary by Policy Duration

1980-1, NAIC Proc.