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October 28, 2007 at 04:00 PM
Work continues to create a framework for establishing an agent to gather mortality data from companies that would be used both to provide experience that can be used to analyze trends as well as check individual valuation data against industry data, if a regulator felt it was necessary.
Regulators of a statistical agent subgroup of the National Association of Insurance Commissioners’ Life & Health Actuarial Task Force shared ideas and had questions about the development of a statistical agent.
The issue is being looked at in terms of companies using the 2001 CSO preferred class structure tables and is also being considered for possible use if a principles-based reserving system becomes a reality. The compiled data could be used in experience table development for issues ranging from annuity persistency to expense factors and mortality experience, according to discussions.
During a discussion on October 23, a number of questions came up over how the development of a statistical agent should proceed. For instance, one question raised was whether a statistical agent would simply gather data, or both gather and scrub/prepare data for use.
John Rink, a Nebraska regulator, said his department does not have the manpower to deal with processing data submissions from companies and that any work on this project should keep costs to both insurance departments and companies in mind. Utah regulator Tomas Serbinowski agreed, noting that his department would not want to handle data submissions.
Additionally, there was also a discussion about whether there would be one statistical agent that would be used nationally or several stat agents companies could use.
Companies should have an option of 2-3 statistical agents rather than a large number, said John Purple, a Connecticut regulator.
