Letter to the editor of National Underwriter Life & Health responding to "LEPr Develops Life Expectancy Estimation Standards" published on May 4

To the editor:

As the chairperson of the American Academy of Actuaries Life Settlements Investment Work Group, I am responding to the article published online about the document published by Life Expectancy Providers Group (“LEPr Develops Life Expectancy Estimation Standards” May 4, 2011).

The American Academy of Actuaries Life Settlements Investment Work Group would like to inform your readers that actuaries practicing in the United States must abide by Actuarial Standards of Practice set forth by the Actuarial Standards Board (ASB). They would not follow the practices set forth in the LEPr document when preparing actuarial reports. Instead, an actuary working in the life expectancy field would review current actuarial practices and follow the guidance and precepts of any Actuarial Standards of Practice that may apply.

When the ASB establishes standards of practice, it does so through a careful research and documentation process, followed by rigorous peer review and public comment period. We are proud to follow such practices.

Sincerely,

Linda M. Lankowski, FSA, MAAA

Chairperson, Life Settlements Investment Work Group

American Academy of Actuaries

Work Group Members

Roger K. Annin, D. Steven Boger, Peter J. Bondy, Peter A. Brot, Tim A. DeMars,   David L. DiMartino, Winston T. Hall, Scott E. Morrow, Steven C. Newman, Gina Collopy O’Connell, Cande Olsen, Richard A. Plano, Kevin M. Reopel, Larry H. Rubin, Gabe R. Schiminovich, Josh Windsor, and Daniel A. Zollars

The American Academy of Actuaries is a 17,000-member professional association whose mission is to serve the public and the U.S. actuarial profession. The Academy assists public policymakers on all levels by providing leadership, objective expertise, and actuarial advice on risk and financial security issues. The Academy also sets qualification, practice, and professionalism standards for actuaries in the United States.

SOURCE: American Academy of Actuaries

Media contact: Andrew Simonelli, assistant director of communications for the American Academy of Actuaries, 202-785-7872, simonelli@actuary.org