Mass Surrenders

  • Unfortunately, some offices issued these contracts with a cash value of something approaching the total single premium guaranteed at any time.
  • Interest rates rose, competitors offered better terms, and so there was a severe risk of mass surrenders, which no investment could have matched.

-- CHARLES M. O'BRIEN - Mr. O'Brien, not a member of the Society, is a Fellow of the Institute of Actuaries and is actuary and manager, Royal National Pension Fund for Nurses, London, England

1974 - EXPANDING THE ACTUARY'S HORIZONS IN THE MANAGEMENT OF INVESTMENTS FOR LONG-RANGE RISKS, Society of Actuaries - 58p