Industry Experience Studies

Insurance companies have always performed experience studies, but the needs for these studies have increased dramatically and will continue to do so.  Product designs have become more complicated.  Principle based reserves and required capital require significant knowledge of historical experience in order to establish appropriate assumptions.

Experience studies must satisfy the following criteria to be of maximum value:

  • Reliable data
  • Sufficient volume of data
  • Retain value of business information
  • Detailed breakdowns to see trends
  • Analysis and understanding
  • Availability of internal staff
  • Timeliness

Ruark Consulting has in-depth expertise conducting experience studies for our clients.  Many have been performed on a multi-company basis, while others have been done for specific needs of individual clients.  Topics studied have included mortality as well as policyholder behavior such as persistency and living benefit utilization.  Ruark Consulting addresses the necessary criteria via:

Reliable data – A large portion of our time is spent scrubbing the client’s data.  Our experienced actuaries review this data, often finding issues that the client was unaware of.

Sufficient volume of data – Our multi-company studies pool data from all participating companies.  Confidentiality of each company’s contribution is maintained.  Aggregation of results dramatically reduces the noise that masks trends in any individual company’s results.  Each participating company can compare its own results to those of the aggregate group.

Retain value of business information – The experience data contributed by participating companies has significant business value.  Ruark Consulting’s study results are only available to the participating companies and are not sold to outsiders.

Detailed breakdowns to see trends – Our studies take an in-depth look at many factors that can affect experience, allowing superior cause-and-effect determinations.  This analysis is particularly effective when multiple companies’ data can be combined, resulting in improved statistical significance at finer breakdowns.

Analysis and understanding – The numerical results of our studies are combined with analysis reports that allow management to quickly get to the actionable information.

Availability of internal staff – Internal client company resources have rarely kept pace with the accelerated needs from experience studies.  Ruark Consulting’s studies can provide the critical information needed by company management and free up scarce internal resources for other priorities.

Timeliness – Ruark Consulting’s experience study results are available within several months of the close of the data collection period, while other studies often have lags measured in years.

Ruark Consulting’s experience studies are the timely, cost effective way to improve the quality of the historical information available to your company for modeling and management decision making.  If you would like to learn more about these opportunities, please contact: