Problem:
MutualOne is a regional player in the group health market in the north eastern United States. As such, most of the current book of business is in the 2-to-500 size market with a smaller portion in the 500-to-3000 size market. Nearly all of MutualOne's group life business was sold as an add-on to their medical sales. Management has decided to grow via acquisitions in the ancillary product lines of dental, group short-term disability and group life. Therefore, the group life department is completing an assessment of their assumption-setting process in preparation for an impending acquisition.
You are an actuarial student in the group life department of MutualOne, an insurance company in the United States. Most of your communication is directed to your immediate supervisor, so it should be well written but not overly formal. Because you will soon be rotating to a different department at MutualOne, it is important that you document any sources for your work.
Your supervisor, Bob, needs to present a summary of the group life assumption-setting process to management, who may be less familiar with the life products. He has asked you to write a brief summary describing the three major categories of assumptions used by actuaries (economic, demographic and experience-based) as they relate to group life claim cost projections.
Additional Information:
The scenario is from Finance. The scenario is discuss about a health insurance company which wants to expand its operations. The company is looking for acquisitions as well as wants to assess different options open to it. You need to assumptions employed by actuaries (economic, demographic and experience-based) as they relate to group life claim cost projections. Find the rest of the details in the solution. Please find out the excel sheets for data upon assumptions and pricing.
Total Word Limit: 1605 Words