EMSI Revises Life Expectancy Mortality Tables
Examination Management Services Inc. (EMSI), one of the major life expectancy underwriters in the life settlement market, said it’s revised its mortality tables.
The firm is now the fourth underwriting company to make changes to its estimates in recent months. Life expectancy estimates are used to price policies on the secondary market. Previous changes by three other life expectancy underwriters have reduced the value of policies.
EMSI said in a statement that it expects to implement its new tables on Feb. 2. The underwriter said it based its updated tables on the Society of Actuaries 2008 Valuation Basic Table, which forecast longer lifespans. EMSI said its revisions also reflect “different patterns of mortality between the life insurance and life settlement industries.”
An EMSI representative was not immediately available to provide further details.
A previous change to life expectancy tables by 21st Services of Minneapolis sent the market reeling by extending estimates by 20% to 25% in September. AVS Underwriting of Kennesaw, Ga., extended its tables by almost 16% in November and ISC Services of Clearwater, Fla., lengthened its estimates by 4% as of Jan. 1.