Members of an American Academy of Actuaries (AAA) work group say any new life expectancy projection guidelines should go through a formal Actuarial Standards Board development process.
Linda Lankowski, chairperson of the Life Settlements Investment Work Group at the AAA, Washington, says she believes the board should, and will, develop a standard, a practice note or some other document relating to life expectancy analyses.
Life Expectancy Providers (LEPr), a group for companies in the longevity forecasting field, released the first version of a life expectancy estimation best practices document in May. The five companies that formed LEPr are hoping actuaries will adopt the best practices standards, such as standards for protecting the privacy of the insureds and standards for disclosing data adjustments, when they develop life expectancy estimates.
LEPr members have done a good job of coming up with ideas and drawing eyes to an important topic that needs actuarial standard setters’ attention, Lankowski says.
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To ensure that actuarial estimates are based on reasonable assumptions and calculated using clear, well-disclosed methods, any standards that actuaries are expected to follow should go through a full standards board research, development, review and public comment process, Lankowski says.