LE*XPOSURE™ is a powerful exposure study and Monte Carlo simulation system for traditional life insurance.
There are up to three stages in the life of a policy. They are triggered when (1) a policy is issued, (2) when a policy goes onto nonforfeiture status (ETI or RPU), and (3) when a policy terminates. Reinsurance and expected mortality, lapse, and shock lapse rates can vary by stage (1) or (2). Expected mortality rates reflect table ratings for substandard policies. The user can select which of the following statuses to include:
Studies can be performed to determine mortality rates for selected causes. As an example, deaths can be coded as accidental and non-accidental. Then a study can be performed to measure accidental death benefit rates.
You can choose any combination of the following: normal paid-up starters, ETI starters, RPU starters, lapses, conversions, deaths of chosen causes, other deaths, surrenders, maturities, expiries, ICOS deaths of chosen causes, other ICOS deaths, and rescissions. By selecting all of these, a study of total termination rates can be performed.
LE*XPOSURE™ can perform Monte Carlo simulations which can be used to support the actuarial opinion and the appropriateness of X factors under Regulation XXX. There are several options with respect to sample size, type, decrement timing and pattern. The reports detail the actual decrement being simulated, its mean simulated values, the sample standard deviations, the significance levels, and the actual to mean simulated ratios.
“Solid documentation and communication of product updates and changes were key to timely and accurate system revisions.”
-- Tom Donaldson, Individual Product, Compliance and Illustration, Software DevelopmentManager Canada Life