A Deadly Cocktail of Drinks, Drugs & Stress

Contributor: Maeve Fleming, Life Client Partner U.K. & Ireland, PartnerRe; Stuart Johnson, Head of Life Underwriting & Claims U.K. & Ireland, PartnerRe.
Date: 7/1/2010
Actuarial risk profiles are based on general population mortality statistics and insured population claims experience. Medical underwriting identifies risks that are consistent with those risk profiles and thus delivers an appropriate and correctly priced risk portfolio – but, it can only do that if it is fully capturing all the material risk factors. Our research from the U.K. life protection market shows that lifestyle risks are a major risk factor for the under 40's, but that these risks are not adequately captured by medical underwriting. A similar study in the U.S identified a similar problem. We present the results of our study and propose improvements that would help to resolve this discrepancy.
Tags: Europe, Life & health

Poised for Prominence in Life

Contributor: Joanna Atkin, Life Pricing Actuary for the UK & Ireland, PartnerRe, John O’Neill, Head Life Market UK & Ireland, PartnerRe
Date: 8/31/2009
Critical illness insurance is an important and appealing life protection cover, offering policyholders the comforting reassurance of an immediate lump sum payment on diagnosis of a defined critical illness or need to undergo a defined serious medical procedure. Mortgage related sales have been particularly well received.
Tags: Europe, Life & health

Anything Wrong with Being 2,500 Years Old?

Contributor: Sara Thomas, Client & Corporate Communications, PartnerRe. With thanks to Michiel Starmans, Jo Willaert, and Keith Jones.
Date: 12/1/2007
2,500 years ago, the Ancient Greeks sat down and thought about what to do if cargo was intentionally destroyed in order to save a ship and the rest of its cargo. They decided that, ‘that which has been sacrificed for all, shall be made good by the contribution of all’. And this very fair thinking has clearly stood the test of time because it’s the logic behind ‘general average’, the procedure that is still used today to distribute intentional losses made to protect the common insurance interests on a loss inflicted ship.
Tags: Europe, Marine, Aviation

Preparing for Higher Limits

Contributor: Emmanuel Becache, Senior P&C Underwriter, PartnerRe; Lea Nefussi, P&C Underwriter, PartnerRe.
Date: 10/1/2007
The current minimum statutory Motor insurance limits in the EU were set in 1984 by the 2nd EU Motor Insurance Directive (84/5/CEE). In the meantime, claims inflation and the wide range of minimum limits adopted in EU countries, have prompted a revision of the minimum limits, as outlined in the 5th EU Motor Insurance Directive (2005/14/CE). The extent to which the 5th Directive impacts a specific insurance market will depend on the current limits offered in that market: ranging from no or little impact in countries that offer unlimited coverage for bodily injury, to potentially significant impact in countries that have remained with the former minimum limits. For example, the minimum limit for combined bodily injury and property damage per event will be multiplied ten-fold, from € 600,000 to € 6 million for countries that choose the second option of the directive.
Tags: Europe, Motor, Regulation, Agriculture

Class Acts

Contributor: Raymond-Marc Courgeau, Senior Underwriter P&C, PartnerRe
Date: 4/1/2007
Devices to deal with collective lawsuits in Europe have, where they exist, tended to be complex, narrow in scope and under-utilized. To enhance process efficiency and open up access to legal compensation, the European Union’s 1998 directive (N° 27) required member countries to adopt new laws for group litigation. In the intervening period, the legal landscape in Europe has shifted, with many countries adopting or considering the introduction of new group proceeding devices.
Tags: Europe, Litigation

Lightening the Load

Contributor: Alexis Iglauer, Life Client Partner, PartnerRe
Date: 4/1/2007
Within a particular country, there are usually a large number of primary providers for annuity products and these products tend to be defined and shaped by the relevant legal and tax regime. This standardization makes comparisons fairly simple for the consumer and enhances the commodity nature of the product. While in some countries the state offers only a subsistence pension, in others a state or company pension will make up the bulk of a pensioner’s post-retirement income. Due to these differences, the extent to which longevity risk is spread between the public and private sector varies from country to country.
Tags: Europe, Life & health