Issue Brief

Committee Releases Issue Paper on Dynamic Lapses

Download (PDF)
Publish Date:

12/18/2023

Category:

Policy & Research

The Life Experience Committee released an issue paper, Considerations Regarding Dynamic Lapses in Actuarial Modeling. The issue paper explores items that impact lapses and discusses the impact of dynamic lapses on various life and annuity products, offers sample formulas for use in modeling, discusses how predictive analytics could be an alternative approach to model lapse behaviors, and provides sources of information on lapses.