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Old 11-07-2017, 01:49 AM
jooo jooo is offline
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Default Switching from Health to Life

Hi! I have worked in health for a few years now. I'm thinking about switching to Life. In health pricing, we gather assumptions and experience data, multiply them together in Excel and get the final price. I mainly use Excel and very minimal SQL. Life work seems a lot more complicated to me. Could someone tell me what their daily job is like? And is programming really essential in Life?

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Old 11-07-2017, 05:01 AM
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Life work is a bit of a different animal. Low frequency and high severity, compared to Health, makes for a different approach. However, I'm sure there exist health coverages that have low freq/high severity.

Depending on the work you do in life, some of your experience will carry over.

I will say that preparing for the Life & Health Qualifications seminar has given me a greater appreciation for the differences between life and health.
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Old 11-07-2017, 10:55 AM
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Quote:
Originally Posted by wat? View Post
Life work is a bit of a different animal. Low frequency and high severity, compared to Health, makes for a different approach.
Do you know how that translate to the work itself? Does it mean less model building and more monitoring ?

I also heard that life work might be less creative. Could you share your experience if you are in Life?

Thank you!
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Old 11-07-2017, 01:55 PM
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Do you know how that translate to the work itself? Does it mean less model building and more monitoring ?

I also heard that life work might be less creative. Could you share your experience if you are in Life?

Thank you!
Again, it depends on what you get into. Models are pretty pervasive throughout the industry, more so now with Principle-Based Reserves (PBR) in effect as of 1/1/2017.

Some of the main differences regarding the difference in frequency/severity characteristics of the industries are related to data availability/credibility & time horizon of projections. Multiple claims per person can be made with health insurance, while people die just once. That's not to say that health insurance/coverage doesn't have its own situations with regard to low frequency claims/coverages, but it happens often with life insurance.

In addition, due to the long-term nature of life insurance, general level & patterns of interest rate and investment strategies need to be a greater consideration than if you have short-term health insurance analyses. This can manifest itself in cash-flow testing, ALM work, modeling guarantees for variable annuities, etc.
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Old 11-07-2017, 04:26 PM
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Ok. Thank you.
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