The presentation will provide insights into the evolving practices for measuring experience data and setting actuarial assumptions for life insurance products.  Topics will include measuring market driven policyholder behavior within the context of a changing economy and the availability of alternatives in the market.  The increase in unemployment and economic uncertainty affects behavior.  We will provide insights into which policyholders are influenced.

 For term products a special focus will be on the reaction of policyholders to large changes in premiums after the original level premium term period.  Actuarial models tend to account for changes in premiums; however this presentation will cover other influencing factors.  As shock lapses rates increase so does the impact of the grace period on the mortality.

 Topics will also include consistency across actuarial applications.  Understanding the effects of the lapse skewness and grace period around the post level term period and the modeling implications are key when performing experience studies and setting assumptions.