Life Pricing

We got ’em all

Term In/Assurance (Limited, Single, Regular Pay), Unit Linked, Universal Life, Endowment Assurance – you name it and you get it! Lux Actuaries prices all types of Life Insurance.

We recently performed Life Pricing for one of the largest national insurers in the UAE. The product was single premium reducing term mortgage plan. We did not just perform pricing, but we ventured into profit testing, cash flow analysis, coinsurance and all sorts of iterations for this particular plan. Analyses was performed under varying assumptions and the Company management was presented with the analyses results in the form of cash flows. From our perspective, this exercise was straight forward pricing and reverse pricing (or profit testing). Once the results and cash flows were finalized, the results were presented to the sales and operations teams and the Senior Management.

Hang on to Good Business!

Recently a European Life Insurer asked us to design and price a Single Premium Product to enhance their product suite, in order to capture a large proportion of expected maturities over the next couple of years.

We worked closely with the Company’s Management and Sales teams in order to structure an optimal product that will appeal to potential policyholders but would not compromise the Company’s profitability or capital resources. The Global and also Euro-zone low yield environment introduced substantial challenges to the project.

Our recommendation included two alternatives, in an effort to make the product appealing to as many of the maturing policyholders as possible, and also to attract a certain level of pure new business. The product variations have been granted all the necessary Board and Regulatory approvals and are expected to be launched in 2016.

Rolling over maturing business is easier than selling new; we believe we have enhanced our client’s business with this new product, in terms of growth, profitability and expense management.