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An investigation into the validity of the multiple table hypothesis as a basis for the underwriting of substandard risks in life assurance

  • H. W. Kreis
Conference paper

Abstract

It might seem surprising at first glance that one should wish to add a further publication to those which have already appeared on the subject of the multiple table hypothesis. However, on closer inspection of the literature available it soon becomes clear that this hypothesis is an ever recurrent topic for discussion, especially after the appearance of statistical studies in this respect. Jecklin in particular has recently written in support of the application of this method in a series of studies [1,2,3,4]. In reply to an article by Sachs [5] and his colleagues, he states at one point [6]:

“The whole problem of selection is therefore clearly more complex than one would naturally assume. Nevertheless we are far from advocating the multiple table hypothesis simply for reasons of convenience as the only proper underwriting basis. If the results of statistical studies should show that a more dynamic method of assessing extra mortality is required, then practice would have to adapt itself accordingly, not so much for the sake of premium computation but rather because of the effects this would have on policy reserves. There should be few special technical difficulties involved since the technical handling of substandard risks is very adaptable, as the author has already had occasion to show [1].”

Keywords

Total Column Impairment Group Mortality Experience Total Line Comparative Mortality 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

  1. 1.
    Jecklin, H.: Beitrag zur technischen Behandlung anormaler Risiken in der Lebensversicherung. Mitteilungen VSVM, Vol. 53, April 1953.Google Scholar
  2. 2.
    Jecklin, H.: in W. S axer: Versicherungsmathematik, Part II. Annex: Grundlagen und Technik der Behandlung erhöhter Risiken in der Lebensversicherung. Berlin: Springer 1958.Google Scholar
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    Jecklin, H.: Beitrag zum Problem der sinkenden Obersterblichkeit. Mitteilungen VSVM, Vol. 58, October 1958.Google Scholar
  4. 4.
    Jecklin, H.: Betrachtungen zum Sterblichkeitsverlauf erhöhter Risiken. Mitteilungen VSVM, Vol. 61, April 1961.Google Scholar
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    Sachs,W, J. Staniszewsky, and G. Röper: Vom Wesen der Auslese. Mitteilungen VSVM, Vol. 54, April 1954.Google Scholar
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    See pp. 198/99 of the work mentioned under [3].Google Scholar
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    Denffer, H. v.: Zur Hypothese der gleichbleibenden Übersterblichkeit erhöhter Risiken. Septième conférence internationale concernant l’assurance sur la vie des risques aggravés. Aix-les-Bains 1955.Google Scholar
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    Cf. the work mentioned under [4], p. 133, 137, 140, 145.Google Scholar
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    Cf. the work mentioned under [4], p. 141.Google Scholar
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    Society of Actuaries: Impairment Study 1951. New York: Peter F. Mallon, Inc., April 1954, p. 12.Google Scholar
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    Cf. the work mentioned under [4], p. 141.Google Scholar
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    See the work mentioned under [4], p. 145.Google Scholar
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    Marx, A.: A life insurer’s interpretation of survival rates. Annals of Life Insurance Medicine, Vol. III. Berlin: Springer 1967.Google Scholar

Other literature used

  1. Croxton, F. E.: Elementary Statistics with Applications in Medicine and the Biological Sciences. New York: Dover Publications, Inc. 1953.Google Scholar
  2. Documenta Geigy: Scientific Tables, 6th Edition. Basel 1960.Google Scholar
  3. Hill, A. B.: Principles of Medical Statistics, 7th Edition. London 1961.Google Scholar
  4. Pfanzagl, J.: Allgemeine Methodenlehre der Statistik IL Sammlung Göschen, Vol. 747/747 a. Berlin 1966.Google Scholar
  5. Reich, Th.: Idee und Praxis der medizinischen Statistik. Bern und Stuttgart: Hans Huber 1964.Google Scholar
  6. Spiegel, M. R.: Theory and Problems of Statistics. New York: Schaum Publishing Company 1961.Google Scholar
  7. Van der Waerden, B. L.: Mathematische Statistik. Berlin: Springer 1957.Google Scholar

Copyright information

© Springer-Verlag Berlin · Heidelberg 1969

Authors and Affiliations

  • H. W. Kreis
    • 1
  1. 1.Swiss Reinsurance CompanyZurichSwitzerland

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