Risk Management
Task Force

Policyholder Behavior in the Tail Subgroup (PBITT) Minutes

 

Policyholder Behavior in the Tail
May 28, 2004
1:00 p.m. Central Time

Participants: Jim Reiskytl (Leader), Mike Crooks, Ed Hightower, Angela Bonnett (SOA), Steve Siegel (SOA)

As discussed on the last subcommittee call a series of questions were posed to our potential researcher, Dr. Kim, on his proposal. Those questions included: Does Dr. Kim have access to U.S. data? Could he expand the scope of the products? If he can expand the scope what are the cost estimates? Dr. Kim responded that he only has access to Korean data, but that he is willing to expand the scope to include a half dozen other products and he expects the costs of the study to be $10,000.

Steve reported that the following U.S. companies would be willing to contribute data to this study based on our earlier survey:

Allstate GPM Life
Principal Trustmark
PMIC Integrity
Aegon  

Members on the call are enthusiastic about the study. All were in agreement that if we were only able to conduct a study utilizing Korean data it would still be extremely valuable as hopefully companies could be able to apply the techniques to their own data. Mike suggested that we ask Dr. Kim if we are able to obtain U.S. data if that would increase the costs.

Members unanimously agreed upon a series of actions.

Next Steps:

  1. Steve will contact Dr. Kim and let him know that we would like to proceed with the project. Further, he will let Dr. Kim know that there is
    the potential to obtain U.S. data and he will find out if the additional data will increase the costs of the research.

  2. Steve will request funding for the project from the Committee on Finance Research (CFR). The next call for the CFR is scheduled for Thursday, June 10.

  3. The SOA will contract with Dr. Kim. We would like to have Dr. Kim get started on the research and begin drafting a request for data in the format he prefers from U.S. companies.

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