Financial Reporting Research Update

By Eric Chen and Ronora Stryker

The Financial Reporter, November 2021

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Research is a primary mission of the Financial Reporting Section and a significant use of our section dues revenue. Here is an update, as of September 2021, on projects in process and those recently completed.

Currently In Process

“UL Premium Persistency and Funding Policy Experience Study.” This project updates the 2018 LIMRA and SOA 2009-13 lapse/surrender and premium persistency experience for individual flexible premium UL products. While scheduled to begin in 2022, the research will also extend the existing analysis to include the impact of product design differences.

“Cause of Death Mortality by Socioeconomic Category in the United States.” The purpose of this study is to construct a set of cause of death life tables for groups of counties based on their relative socioeconomic position. The project is progressing and is in the middle stages with completion targeted by end of the year.

“Mortality Improvement Trend Analysis.” This research examines the key drivers of mortality improvement and how they vary. Proprietary U.S. Census data has recently been secured for the study and the data is being analyzed with a goal of completing the study by December of 2021.

“Obesity Trends and the Mortality and Morbidity Impacts.” The project will include a literature review to examine the most current data and research focused on obesity and measuring its impact on the U.S. and Canadian populations. Statistically significant differences in the risk of medical issues, treatment, and mortality rates related to obesity will be identified and the additional dollar cost of obesity in the U.S. and Canada will be estimated. Work is nearing completion and targeted to be released in October or November of this year.

“15th Annual Emerging Risk Survey.” This survey tracks risk managers thoughts on emerging risks across time identifying trends and examining the evolution of risk management practices. The survey is targeted to be administered in late 2021. Both the full and key findings reports from the 14th survey are now available on the SOA website at https://www.soa.org/resources/research-reports/2021/14th-annual-survey/.

Recently Completed

Mortality by Socioeconomic Category in the United States.” The purpose of this study is to construct a set of life tables for groups of counties based on their relative socioeconomic position.

Living to 100.” This research initiative focuses on aging—increases in survival rates and the resulting increase in aging populations—together with its implications to social, financial, retirement, and health care systems. It involves a symposium that was held in January and generates a lasting body of research to educate and aid individuals and policymakers in addressing the potential needs and services of the future advanced-age populations. Recordings of the sessions and research papers presented at the event are available in an online monograph.

Delphi Study of Economic Variables.” This study uses a Delphi Study framework to gather insights on the thought processes experts employ to estimate future values of economic variables.

Simplified Methods for Principle-Based Reserve Calculations.” This project investigates a simplified approach for determining principle-based reserves. 

Macroeconomics-Based Economic Scenario Generation.” This project intends to find a practical way to improve economic scenario generators by studying the causes of economic development, economic volatility and capital market volatility.

Simplified Issue Underwriting.” This research explores the application of simplified issue underwriting in the life insurance industry. Among the areas studied are the definition, developments, characteristics, challenges, current practices, assumptions, and data elements for simplified underwriting. 

Request for Research Proposals

Do you have an idea for a research topic you would like to see the Financial Reporting Section consider for funding? If so, we want to hear from you! For more information, please contact Mark Walker or Ronora Stryker.

Statements of fact and opinions expressed herein are those of the individual authors and are not necessarily those of the Society of Actuaries, the newsletter editors, or the respective authors’ employers.


Eric Chen, FSA, FCIA, is a consulting actuary and a member of the Financial Reporting Section Council. He can be reached at ericyn.chen@gmail.com.

Ronora Stryker, ASA, MAAA, is a research actuary for the Society of Actuaries. She can be reached at rstryker@soa.org.