The Financial Impact of Underwriting Class Exceptions

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Multiple Preferred UW Class Structure Numerical Example Pref ++ Pref + Pref Standard Substd Decline 0 1 Qx
Closing Comments • Keep in mind that the impact of an underwriting class exception may be greater on the reinsurer (as compared to the direct company) as a much larger percentage of the reinsurers profitability is dependent upon an accurate mortality assessment. This can be especially poignant in the case of a permanent policy with a large single premium that may provide spread income for the direct company, but not to the reinsurer who is providing YRT reinsurance for the mortality risk. • What appears to be a small % increase in mortality actually has a much larger impact on the profit margin as the profits are a much smaller % of the total.
Page 1 and 2: The Financial Impact of Underwritin
Page 3 and 4: General Population Mortality Distri
Page 5 and 6: Underwriting Information Individual
Page 7 and 8: Preferred Class Without Deviations
Page 9 and 10: Preferred Class with Deviations . B
Page 11 and 12: Single Preferred Class UW Structure
Page 13 and 14: Allocation of Term Premium Per Pric
Page 15 and 16: Increased Mortality from Class Shif
Page 17: Preferred Underwriting Deviations T

The Financial Impact of Underwriting Class Exceptions

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