The Society of Actuaries has posted a collection of essays by SOA members who have tried to predict what the future might hold for life insurers.
One of the essays, by Chiu-Cheng Chang, covers the topic of “adjustable biological-age pricing.”
“Pricing life insurance products according to one’s biological age (supplemented by well-established but simple underwriting tools if necessary…), is simple, systematic, dynamic, more scientific and global,” Chang writes. “It is nothing but a simplified and unified approach to traditional risk classifications…. Using modern medical devices to measure one’s biological age, we can see very clearly that throughout one’s lifetime one can definitely and significantly decrease or increase one’s biological age versus one’s chronological age.”
Pricing according to biological ages, rather than chronological ages, could spur some insureds to take steps to improve their health, Chang writes.