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Bragg Study of Mortality by Policy Size
Groups
Raw
Data Study, on a Subset of All Bragg
Data
Exposures total $ 1.234 trillion. Actual deaths total $ 2.141 billion
Used in the Construction of the 1997 Bragg Life Tables
A note on
Pricing
Table of Contents
Introduction
Description of Data
Other Super-Jumbo (Band 9) Experience Not in Study
Policy Size Group Experience Summary
Typical Underwriting Requirements
Description of Standard Data Display
Determination of Results by Numbers of Policies
Transformation To and From 75-80 Basic Select
Comparison With Previous Studies
Band 9 Super-Jumbo Extended Results
Discussion of Results
Summary and Conclusions
Contact
Jack Bragg
Introduction
This is a study of Standard Ordinary mortality experience by amount group.
The experience period is 1990 - 1994.
The study is of direct business written, whether reinsured or not.
The authors believe that this is the first time that a study has been made of
all amount groups (not just large amounts).|
The results, which are remarkable, will be of great interest for pricing and for
reinsurance purposes.
The results are presented in very great detail, and constitute a raw data bank
which can be researched by users of this study.
The authors have included a study of typical underwriting requirements for each
amount group.
Description of Data
Exposures total $ 1.234 trillion. Actual deaths total $ 2.141 billion. Results
are subdivided by sex and smoking status.
The data are for select durations 1 - 15 only. No Ultimate data are presented.
The data are for Standard Ordinary single life business.
Results are presented by amounts of insurance.
However, the authors estimate that the number of policy years exposed is
approximately 27,000,000 , and the number of actual death claims is
approximately 68,000.
Data are primarily for the United States.
However, there are some Canadian data included.
Information in this report is generally provided in great detail by size
group, age, sex, duration, and smoking status.
The authors are aware that there
are a very small number of cells where the death amounts (or even in fewer cases
the exposure amounts)
do not seem consistent with the size group involved.
Believing that there can be legitimate explanations such as changes after issue,
compromise settlements, etc.
the authors have left all such cells unchanged, as
reported to us.
Data are provided for the following size bands:
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1. |
< 10,000 |
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2. |
10,000 -
24,999 |
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3. |
25,000 -
49,999 |
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4. |
50,000 -
99,999 |
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5. |
100,000
- 249,999 |
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6. |
250,000
- 999,999 |
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7. |
1,000,000 - 2,999,999 |
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8. |
3,000,000 - 4,999,999 |
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9. |
5,000,000 and over |
Not all of the contributing companies were able to contribute data for every
one of the 9 amount bands.
This means that the overall distribution of business by amount band, as shown in this report,
should not be considered as "typical"
for the industry.
Contact
Jack Bragg
Description of Standard Data Display
Results of this study are generally shown on the standard data display sheets
used internally at Bragg Associates for all studies. The display is shown on two
sheets of paper. Colloquially, we refer to these as "white green sheets",
referring to the fact that they were originally shown on old-fashioned green
computer paper.
Page 1 : Exposed, Actual Deaths|
Page 2 : Expected Deaths by '91 Bragg Life Tables, A/E Loss Ratio
The information is shown for quin issue age groups and for durational
groupings 1-2; 3-5; 6-10; 11-15. Down totals and cross totals are shown.
For purposes of this study, all information is by amount of insurance.
However, information by number of claims (for purposes of credibility studies)
is addressed separately in this report.
Exposures have been slightly adjusted (in the manner described in our annual
Mortality/AIDS/Persistency reports) so that the information is reflective on an
age-nearest-birthday basis at the central ages shown. The bulges in data at
decennial ages such as 25, 35, 45 etc. reflect the fact that some data are
reported in 10 year age groupings such as 20 - 29, 30 - 39, etc. Other data are
reported in 5 year groupings such as 1$ -22, 23 - 27, etc.
The standard data display pages ("white green sheets" ) included in this
report are uniformly grouped as follows:
2 Combined sheets
2 Male Nonsmoker sheets 2 Male Smoker sheets
2 Female Nonsmoker sheets 2 Female Smoker sheets
The "combined" sheets (known colloquially as "fifth sheets" ) are the sums of
the other four sheets.
A standard bundle therefore consists of 10 pages.
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