Author :

9 thoughts on “The Indian ‘reverse’ select Mortality table

  1. I feel that insurance companies in India should focus more on analytics part pertaining to both underwriting and claims. Lot of work has gone in the developed countries and insurance companies in those countries are effectively using many analytical tools like Predictive Modelling ( Using generalised statistical models ) for ascertaining the risk of the insured they are carrying and also detecting fraudulent activities at the time of claims and underwriting.

    1. You are just spot on. I think this is the solution apart from creating awareness. Also there should be some fear of punishment for committing fraud. The industry should put in collective effort in this direction.

  2. The whole big data revolution (or hype?) doesn’t seem to be hitting Indian insurance industry. Correct analysis of the huge data these insurance companies have in their databases has potential to provide lot more business insights.

    1. Some companies have started using data analytics and seen some early success. It should be taken up in a big way by all insurers.

  3. Adding fuel to fire, there is one more weapon blessed to those cartels in the form of revised Sec 45.
    This may change the reverse mortality behaviour. Cartels sleep for 3 yrs and open up claims post which all claims are paid under their new heaven of sec 45.
    This may spike the 3+ yr experience balancing the current scene.
    There are very good tools with Reinsurance experts but companies need to religiously follow their guidelines to control the pattern of Anti- Selective life table of India.

    1. Yes, Sec 45 will further distort the behaviour and will probably shift the curve up or change the shape or both, adding further to the challenges of insurers. Agree that the companies should religiously follow guidelines. Most importantly, they should stop chasing top line at the cost of bottom line.

  4. Sai, thanks for bringing this up.Analytical models help in managing risk but only to a certain extent as it takes a while to pick trends.What helps more is the much forgotten field underwriting.Afterall, life time of any filter deteriorates quickly if the quality of business sourced is poor. Also, the aggressive approach in pricing , especially term plans does no good- wonder if the mortality in India is better than any developed Asian country.

    1. Yes Ashok, in theory. But in practice, there is lot of anti selection and fraud happening. Since everything is perfect on proposal form, underwriting seems to have very limited impact. What is your view?

Leave a Reply

Your email address will not be published. Required fields are marked *