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Research Studies–Proposal Requests

Request for Proposals–Implications of the Perceptions of Post Retirement Risk for the Life Insurance Industry

1. Background

The Society of Actuaries (SOA) has initiated several projects to study public perceptions of longevity risk. For example, the SOA's Post Retirement Needs and Risks Committee has conducted a series of surveys to discern public perceptions concerning the financial risks to be faced during retirement and the strategies retirees and pre-retirees are employing to address these risks. Furthermore, the SOA's "Retirement 20/20" initiative re–envisions the roles of various stakeholder groups in the retirement system of the future. The information could be useful to insurers as many are currently investigating offering products and services to older age consumers for protection against the financial risks associated with aging.

2. Purpose

The purpose of this project is to create reference material that will educate actuaries and other interested individuals working in the life insurance and annuity industry on the needs and opportunities of the older age market to be used in the development and distribution of products that will protect future retirees from financial risk.

3. Research Objectives

The overall objective of this project is to synthesize the findings of SOA studies and other publications on the topic of post–retirement risks, including public perceptions of these risks as well as measurement and projection of these risks, and to identify gaps in the literature on these topics. The researcher will summarize his/her findings in a report that would ideally include:

1. Determining the level of public awareness and concern about each of the risks described in the SOA Post–Retirement Risks Chart and demographics associated with higher levels of awareness and concern.
2. Identifying and summarizing studies measuring the historical magnitude and frequency of financially adverse consequences caused by each of these risks and projections for future exposures to these risks. Include variations by as many demographic factors as possible.
3. Describing the extent of alignment or misalignment between public perception and projected exposure to these risks.
4. Opining on the extent to which free markets can and should bear these risks.
5. Discussing the implications of these findings for insurance product design and marketing strategies.

 

The Researcher(s) will work closely with a Project Oversight Group (POG) to meet study objectives. The POG will review research deliverables and provide management, oversight and direction for the project.

4. Proposal

To facilitate the evaluation of proposals, the following information should also 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. We expect to reach agreement on a fixed cost for this project with the Researcher.

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 The Actuarial Practice Forum or other SOA publication).
6. Other related factors that give evidence of a proposer's capabilities to perform in a superior fashion should be detailed.

 

5. Selection Process

The SOA's sponsoring committees are responsible for the selection of the proposal to be funded. Input from other knowledgeable individuals also may be sought, but the sponsoring committees will make the final decision. The SOA's Research Actuary will provide staff actuarial support.

6. Questions

Any questions regarding this RFP should be directed by fax, or e–mail to: Ronora Stryker, SOA Research Actuary (fax: 847.273.8514).

7. Notification of Intention to Submit Proposal

If you intend to submit a proposal, please send written notification by November 21, 2008 to Jan Schuh, SOA Research Administrator, fax (847.706.3599).

8. Submission of Proposal

Please e–mail a copy of the proposal to: Jan Schuh.

Proposals must be received no later than December 5, 2008. It is anticipated that all researchers who have submitted proposals will be informed of the status of their proposal no later than January 31, 2009.

Note: Proposals are considered confidential and proprietary.

9. Conditions

The Society of Actuaries reserves the right to not award a contract for this research. 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 Society of Actuaries also reserves the right to redirect the project as is deemed advisable.

The Society of Actuaries intends to copyright and publish the results of this research. The research will be considered work–for–hire and all rights thereto belong to the Society of Actuaries. However, appropriate credit will be given to the Researcher(s).