The situation in the “total and permanent disability” (TPD) market in Australia is a good reason why insurers should employ fearful, negative actuaries and underwriters, and treat them with respect.
As a reporter, I always want the insurance companies that I write about to be offering some new product or feature. Ideally, something easy to understand.
Marketers, too, are often looking for some interesting new twist to help set a product apart from the pack and break free from the tyranny of the spreadsheet, with the search results sorted in order from least expensive to most expensive.
Issuers of “superannuation funds” — mandatory retirement funds — in Australia tried to help their funds break free from the tyranny of the spreadsheet by offering attractively priced TPD benefits options with little or no extra underwriting.
A TPD product or feature pays off when the insured suffers from a severe, unusual type of disability.