How will improved forecasts of individual lifetimes affect underwriting?
Open Access
- 29 August 1997
- journal article
- Published by The Royal Society in Philosophical Transactions Of The Royal Society B-Biological Sciences
- Vol. 352 (1357), 1067-1075
- https://doi.org/10.1098/rstb.1997.0087
Abstract
The combined effects of underwriting and adverse selection among heterogeneous populations are considered, using a simple Markov model. We illustrate the possible extent of the costs of adverse selection; in all cases, above–average sums assured is the most significant factor.Keywords
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