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Research

Research Studies–Proposal Requests

SOA Health Section Disability Income–Related Research Topics

1. Background

The risk of disability during a worker's career is significant and the consequences for individual and family financial security can be severe. As such, the Society of Actuaries' Health Section, as part of its mission, is committed to advancing knowledge in disability income insurance and furthering the industry. In keeping with its desire to add to the disability–related body of knowledge, it is greatly interested in receiving proposals for research on any of the topics described in the Research Objective section (Section II.) of this document. It is the intention of the Section to formally initiate projects on at least one of these topics for 2008 with possible future projects on the topics in subsequent years. The budget for disability projects for 2008 is approximately $35,000 to $50,000.

2. Research Objective

To advance knowledge in disability insurance, the SOA Health Section Council would like to receive proposals related to the following topics. Proposals are welcome on one or more of the topics. The description of each of the topics has been deliberately written briefly and primarily open–ended in order give potential proposers sufficient latitude in the development of proposals:

1. A comparative analysis of the commonly used methods for computing incurred but not reported reserves (IBNR) for group and/or individual disability insurance. Methods should be compared for accuracy and appropriate use in different situations.
2. Development of a new method for estimating the rate and magnitude of Social Security Disability Insurance approvals for use in valuation and other purposes.
3. An application of advanced statistical techniques to analyze the extent of linkage of disability claim costs (incidence and duration) to changes in external economic metrics (e.g. consumer confidence, unemployment, GDP growth, inflation, etc.).
4. A comparative analysis of the commonly used methods to assess the margin in group and/or individual disabled lives reserves. Methods should be compared for accuracy and appropriate use in different situations.

 

3. Proposal

To facilitate the evaluation of proposals, the following information should be submitted:

1. Resumes of the researcher(s), including any graduate student(s) expected to participate, indicating how their background, education and experience bear on their qualifications to undertake the research. If more than one researcher is involved, a single individual should be designated as the lead researcher and primary contact. The person submitting the proposal must be authorized to speak on behalf of all the researchers as well as for the firm or institution on whose behalf the proposal is submitted.
2. An outline of the approach to be used, emphasizing issues that require special consideration. Details should be given regarding the techniques to be used, collateral material to be consulted, and possible limitations of the analysis.
3. Cost estimates for the research, including computer time, salaries, report preparation, research costs, etc. Such estimates can be in the form of hourly rates, but in such cases, time estimates should also be included. Any guarantees as to total cost should be given and will be considered in the evaluation of the proposal. While cost will be a factor in the evaluation of the proposal, it will not necessarily be the decisive factor.
4. A schedule for completion of the research, identifying key dates or time frames for research completion and report submissions.
5. Ideas regarding the form and distribution of the final report, both for immediate release and for permanent reference (e.g., submission to North American Actuarial Journal, SOA Monograph Series, Actuarial Practice Forum, CD ROM).
6. Other related factors that give evidence of a proposer's capabilities to perform in a superior fashion should be detailed.

 

4. Selection Process

The SOA Health Section Council is responsible for the selection of the proposals to be funded. Input from other knowledgeable individuals also may be sought, but the Section Council will make the final decision. The SOA's Research Actuary will provide staff actuarial support. A Project Oversight Group will be appointed to oversee each project that is initiated.

5. Questions

Any questions regarding this RFP should be directed by fax, or e–mail to: Steven Siegel, SOA Research Actuary (Fax: 847.273.8578; e–mail: ssiegel@soa.org).

6. Notification of Intention to Submit Proposal

If you intend to submit a proposal, please send written notification by March 1, 2008 to Jeanne Nallon by e–mail (jnallon@soa.org) or FAX (847.273.8592).

7. Submission of Proposal

Please e–mail a copy of the proposal to: Jeanne Nallon at jnallon@soa.org.

Proposals must be received no later than March 31, 2008. It is anticipated that all researchers who have submitted proposals will be informed of the status of their proposal no later than April 30, 2008.

 

Note: Proposals are considered confidential and proprietary.

 

8. Conditions

The SOA Health Section reserves the right to not award a contract for these research topics. Reasons for not awarding a contract could include, but are not limited to, a lack of acceptable proposals or a finding that insufficient funds are available to proceed. The SOA also reserves the right to redirect the projects as is deemed advisable. The SOA intends to copyright and publish the results of this research. The research will be considered work–for–hire and all rights thereto belong to SOA. However, appropriate credit will be given to the researcher(s).