Life Insurance

1
Life Insurance

• Ale Tomain
• Knowledge Extraction 2003

2
Work Experience

• 1,2 SURS - Department for sampling technics
• 1,4 Zavarovalnica Triglav - IT (reinsurance)
• 2,1 Kapitalska druba - Actuary
• 0,4 Merkur zavarovalnica - Appointed actuary
• -----------
• Member of SAA

3
Insurance

• Life
• life is object of insurance
• Non-life
• property, liabilityalso accident and health ins.
• Reinsurance
• insurance for insurance company
• also insurance for reinsurance company
• Supervisor
• law -gt restrictions
• security of insured person

4
Life Insurance

• Term (benefit on the death)
• fixed term (benefit paid at the end of the
  contract)
• Endowment (termbenefit on survival)
• Whole life assurance
• Annuity
• immediate
• deferred
• Living benefits
• Critical illness
• Long-term sickness
• Long-term care
• Unit linked (index linked)
• Pension (define benefit, defined contribution)

5
Non-life (general) insurance

• Liability
• Employers, public, products, professional
  indemnity
• Property
• Financial loss
• Accident
• death, disability, annuity...
• Health
• dread diseases (life?)
• better placing in hospitals
• choice of doctor or/and surgery team

6
Role of the Actuary

• Concept of Appointed Actuary (respon. under law)
• Critical role in maintaining financial health of
  life office
• Key involvement in
• new business terms
• premium rates
• policy conditions
• adequacy of reserves
• lots of guidance from profession

7
Guidance to App. Actuary 1

• General
• business is operated on sound financial lines and
  with
• regards PRE (policyholders reasonable
  expectations)
• Considerations affecting appointment
• direct access to Board - relevant information
• conflict of interest (finance, marketing
  director)
• Extent of responsibility
• to profession and client and regulator
• must advise company (conflict) -gt must tell
  regulator
• Duties
• report on solvency (solvent all times)
• advise company on profit allocation

8
Guidance to App. Actuary 2

• Premium rates and policy conditions
• appropriate p.r. (to meet liabilities)
• Actuarial investigations
• asset-liability matching
• accurate data
• interest rate
• reinsurance
• Insolvency
• internal, external factors
• Written reports (yearly, quarterly)
• ensure that financial results give true
  impression

9
Contents

• 1. Survival model life table
• survival function
• actuarial notation
• force of mortality
• life table
• laws of mortality (if time)
• 2. Life assurances
• interest rates (only definition)
• elementary types
• net/gross premium
• reserve
• 3. What else? (discussion)