Experience Studies in Individual Life

Preferred Life Insurance Valuation Project (United States)

Responding to a request from the NAIC, through the American Academy of Actuaries, the Life Insurance Experience Committee is conducting experience studies that will support redefinition of reserve requirements for preferred life policies. The likely outcome of this project will be to better reflect preferred mortality in life insurance liabilities while still assuring adequate protection for policyholders and investors. This is a unique opportunity for actuaries to demonstrate their "marketplace relevance" and become an active partner in helping to reflect mortality risks in the bottom line.

Related to this project, the SOA and the American Academy of Actuaries have formed a joint project oversight group to advance the preferred life insurance valuation project. Key issues to be considered are the experience study and resulting valuation table, as well as the regulatory requirements for use of the resulting table. The Project Oversight group consists of representatives from the SOA, the AAA, state insurance regulators, and various industry groups.

Follow the progress of the preferred life insurance valuation project through the work of the Preferred Mortality Project Oversight Group.

Find out how to submit data to the 2002-04 Individual Life Experience Study

Find answers to frequently asked questions about the preferred valuation mortality experience study.