WASHINGTON, May 04, 2010 (BUSINESS WIRE) — Mike Fasano, President of Fasano Associates, called for life expectancy underwriters to perform truthful Actual to Expected Analyses, in accordance with LISA (Life Insurance Settlement Association) Best Practices. Said Fasano: “The fact that all 6 of the major life expectancy underwriters agreed on Best Practices is a great step forward and speaks well for our profession. However, there has been talk that some life expectancy underwriters either have or are considering performing Actual to Expected analyses based on restated life expectancy estimates, rather than the actual estimates they gave to their clients. I think this would be a terrible mistake, as it would call to question the integrity of the entire Best Practices process and undermine investor confidence in what we do. It would be like taking an exam after you have been given the answers. For an Actual to Expected analysis to be credible, it must be based on your Actual life expectancy predictions, not restated estimates.” Fasano chaired the LISA Task Force on Best Practices for Life Expectancy Underwriters. He said that hypothetical analyses that reflect the impact of current underwriting methodologies are useful, but that they should not be called Actual to Expected, as that creates a false impression. He urged investors, providers and brokers to always ask their life expectancy underwriters to disclose whether their Actual to Expected results are based on actual or adjusted life expectancy estimates, and whether they are in keeping with LISA Best Practices.
Fasano also announced more details on the 7th Annual Fasano Life Settlement Conference, to be held later this year in Washington, DC on Monday, October 18th. “We are putting together a very interesting agenda, which will appeal to investors, as well as other industry participants. Michael Barone, Fox news analyst, will be giving his insight on the impact of the upcoming elections. Guy Coughlin of J.P. Morgan will present on the value of stochastic modeling techniques. And we will have our usual mix of investment, actuarial, legal and medical topics. As with prior years, we expect to attract between 250 and 300 participants.” The Fasano Conference is a one-day event followed by cocktails and dinner. The conference fee is $395; however a super early-bird rate of $325 is available now. Information about invitations to Fasano’s 2010 Conference, can be found at www.fasanoassociates.com. Questions as to speaking or sponsorship opportunities should be referred to mfasano@fasanoassociates.com.
About Fasano Associates:
Fasano Associates is a leading underwriting consulting firm, serving the life, health and life settlement industries.
SOURCE: Fasano Associates
