Last year SCOR introduced its branding campaign “The Art & Science of Risk.” The phrase underlies the nature of our business: managing risk through proven mathematical methodologies while recognizing the role of experience and judgment in assessing risk.
In our industry the “science” of risk is front and center: our actuaries, statisticians and medical directors help us quantify the nature of mortality, longevity and morbidity risk in terms of probability and severity, confidence intervals and credibility. In this issue of SCORviews, Mark Swanson examines mortality improvement in the US, compares it with improvement rates in other parts of the world and explains the implications. Beaman Senecal examines the effects that conversion provisions can have on term life terminations and asks whether carriers are factoring these effects into their pricing effectively as they consider the lapse effect of post-level term rate jumps.
As the insurance industry becomes more electronically and data driven, companies are exposed to more operational risk. Clarke Rodgers discusses cybersecurity, what carriers can do to manage data risk, and specifically what we have done to provide SCOR Velogica® clients a state-of-the-art data security environment. We are particularly pleased that Velogica has received its SOC2 report for data security controls.
We have a number of initiatives underway at SCOR to capitalize on the art and science of risk. Last year we welcomed Mary Bahna-Nolan to head SCOR’s global Mortality R&D center. Mary’s unit is made up of actuarial and underwriting researchers who produce experience studies that support clients’ understanding of their risks and ultimately support their business performance.
Our R&D unit currently is working with clients on projects including mortality improvement forecasting as it pertains to mortality and longevity risk; older-age mortality and implications for mortality, longevity and long-term care risk; and policyholder behavior at the post-level term. Mary and her team are visiting clients to share our observations about emerging mortality, underwriting and other business trends.
As a thought leader in the life insurance business, we are committed to sharing our knowledge through regular client visits and active involvement with industry associations. This Spring our experts will present at a variety of major industry meetings. For example, Paolo De Martin, who heads SCOR’s global life operations, will join a panel of life reinsurer CEOs at the Canadian Reinsurance Conference. At AHOU’s Annual Meeting Roger Tafoya will discuss our experiences in automated underwriting, a hot topic among our clients. Matt Daitch will share our expertise in longevity risk management at the Life Insurance Conference.
Through these and other opportunities, we look forward to working with you in tailoring solutions to enhance your company’s depth in The Art & Science of Risk.