Life insurance due diligence has gone into a ditch. Let’s put it on a road that can lead somewhere.

What would you like to see in these areas?

Due diligence checklists
Due diligence education
Analytical tools
Short instructional videos
Ideas for academic research
Information about curated product platforms
Other things

Send your thoughts to Glenn Daily (gdaily@glenndaily.com).

News

The Future of Life Insurance by Glenn S. Daily

Webinar: Glenn S. Daily, "Advanced Life Insurance Due Diligence: Reimagining the Process", Advisors4Advisors.com, February 28, 2024

What is due diligence?

Answer from ChatGPT

Are you a researcher who is looking for questions to answer? Consider these.

What credited interest rate should be used for deterministic indexed universal life illustrations? Should a selected rate create parity across economic value or the cost of production?
Should stochastic illustrations use an economic scenario generator with market-consistent assumptions for all asset classes and derivatives?
How can performance measures be updated for stochastic illustrations?
What rules should be used to dynamically adjust premiums and/or death benefits in a stochastic illustration?
What can stochastic illustrations reveal about the risks of premium financing?
To reduce the asset/liability management risk of premium financing, is it possible to design a life insurance policy that explicitly links the cost of borrowing and the credited interest rate?
What can operations research (e.g., dynamic programming) say about optimal premium schedules?
What are the pros and cons of using a variable universal life chassis for variable, indexed, and fixed-interest options?
What is the value of the smoothing of returns created by book-value-based accounting?
What is the value added by active management of insurance company general accounts?
What mortality rates and discount rates should be used in expected present value calculations?
Is life insurance an asset class?
Are policyowners being adequately compensated for risk?
How does the insurance company’s financial strength affect policyowners?
Can statutory financial information be used as a proxy for product-specific pricing assumptions?
How can policy documents be designed more effectively?
What is the impact of better information on consumer behavior?
How can insurance regulators improve the marketplace?
- Stochastic illustrations
- Clear explanation of guarantees
- Clear terminology (meaning of underwriting classes, variable universal life net rate of return, cash value vs. account value)
- Public information about pricing changes
How can curated product platforms gain market share?