Milliman

  • 2019 - SOA / Milliman - Universal Life and Indexed Universal Life Survey Results, By Susan J. Saip, Milliman, Society of Actuaries - 7p
    • The following products (as defined here) are included in the scope of the survey:
      • UL/IUL with secondary guarantees (ULSG/IULSG). A
        UL/IUL product designed specifically for the death benefit guarantee market that features long-term no-lapse guarantees (guaranteed to last until at least age 90) either through a rider or as a part of the base policy.
      • Cash accumulation UL/IUL (AccumUL/AccumIUL).
        A UL/IUL product designed specifically for the
        accumulation-oriented market, where efficient accumulation of cash values to be available for distribution is the primary concern of the buyer. Within this category are products that allow for high early cash value accumulation, typically through the election of an accelerated cash value rider.
      • Current assumption UL/IUL (CAUL/CAIUL). A UL/
        IUL product designed to offer the lowest-cost death benefit coverage without death benefit guarantees. Within this category are products sometimes referred to as “dollar-solve” or “term alternative.”
    • UL sales were reported by underwriting approach for 2017 and YTD 9/30/18. For the purpose of the survey, underwriting
      approach was defined as follows:

      • Simplified issue (SI) underwriting. Less than a complete set of medical history questions and no medical or paramedical exam
      • Accelerated underwriting (AU). The use of tools such as a predictive model to waive requirements such as fluids and a paramedical exam on a fully underwritten product for qualifying applicants without charging a higher premium than for fully underwritten business.
      • Fully underwritten. Complete set of medical history questions and medical or paramedical exam, except where age and amount limits allow for nonmedical underwriting.
    • ILLUSTRATIONS
      • The credited rate used in IUL illustrations for participants’ most popular strategies ranges from 4.25 percent to 7.75 percent. This is the same range that was reported for the current maximum illustrated rate allowed for the most popular strategies, but the mean is equal to 6.44 percent and the median is equal to 6.42 percent. Eight of the participants reported the rate decreased relative to the illustrated rate of one year ago.
        Three participants reported no change in the illustrated rate, and seven reported increases in the illustrated rate. The current median illustrated rate is 6.23 percent and the current mean is 6.36 percent.
      • Twelve participants reported that IUL illustrations allow for a negative spread on loan interest charged versus interest credited. Seven of the 12 reported that they allow for a spread greater than 1 percent where interest credited includes all index-based interest credits, whether due to input interest rates, participation rates, multipliers or persistency bonuses.
  • 1990-2, NAIC Proceedings - Troubled Company Working Group of the Examination Oversight (EX4) Task Force
    • Chair - Norman Koefoed, Chair (Ill);
    • (p ) - The Chair notified the task force that a Non-Investment Bonds Working Group had been appointed to review companies with large holdings in non-investment grade bonds.
      • The group had met three times since being organized.
      • The initial concern has been with Executive Life Insurance Company of California.
      • <WishList-x2> -The group has received reports from both an independent actuarial firm and the company and is monitoring the situation.
      • The chair advised that no precipitous action should be necessary against the company.
      • In addition, the group has provided the California Department with a list of recommendations regarding needed information from the company.
      • The chair stated that information provided to the group indicates the company to be in a very liquid position, with surrenders declining as compared to January and February of this year.
      • Mr. Montgomery stated that the Actuarial Valuation Report from Milliman and Robertson should be completed by week end and copies would be available to states from the actuarial firm. - <Wishlist>
  • A regulator had told them that in that case they should not treat their universal life as though it was a whole life policy matured by paying the GMP. [Bonk: GMP = Guaranteed Maturity Premium]
    • Rather, you should assume that people will pay the guideline level premium, and that will give you a policy that provides guaranteed coverage for something less than the whole of life.

--  Daniel J. McCarthy, [Bonk: Milliman]

1999 - SOA - Valuation Actuary Symposium, Society of Actuaries - 28p

  • Daniel J. McCarthy
    • 2008 - SOA - Obituary - [link]
      • McCarthy began his actuarial career at Equitable Life and joined Milliman USA in 1972.  For seven years, beginning in the early 1990s, McCarthy served as the firm's chairman, while continuing to work on consulting projects. 
      • SOA, ASB, The Actuarial Foundation, American Academy of Actuaries