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Scroll down to view Fasano informative videos.
Why should you consider Fasano Associates for your Life, Annuity, and Life Settlement Underwriting?
For more information about obtaining a Life Expectancy Report or other Underwriting Services, please
Wide Range of Topics Presented to Over 200 Professionals at 2014 Fasano Longevity Conference
Contingent Life – Structured Settlements - Fasano Associates Underwriting Methodology
Fasano Associates, a premier life expectancy provider in the life settlement space, has developed a new proprietary mortality
table and underwriting methodology for the Life Contingent – Structured Settlement business. View the video below; Fasano
Associates President, Michael Fasano, demonstrates and explains the ground breaking underwriting enhancements that have
improved life expectancy predictions in the growing structured settlement market.
Life Expectancy Performance Measurement – Industry Concerns!
During a recent BVZL Conference, Fasano Associates President, Michael Fasano, presented the strengths
and weaknesses of different methodologies used to measure Actual to Expected accuracy and also discussed
some of the significant shortcomings associated with restated or “current basis” approaches to performance measurement.
Fasano Responds to Concerns Over 21st LE Extension
Fasano Associates has responded to market concerns that other LE underwriters may follow
21st Services recent LE extension.
New Methodology for Measuring Actual to Expected Accuracy Applied to Fasano Database
Drs. Daniel Bauer (Georgia State University) and Jochen Russ (Institute for Actuarial Studies) presented a new
methodology for measuring Actual to Expected accuracy at the 9th Annual Fasano Life Settlement & Longevity
Conference. The new methodology, Difference in Curtate Life Expectancy (DCLE), calculates the average difference
between the actual and expected number of months lived, and is less biased than other methodologies. When
applied to the entire Fasano life settlement database, Fasano’s average difference between actual and expected
months of survival was less than one month.
Recent Analysis Shows Convergence of AVS to Fasano LEs but Increasing Divergence of 21st LEs
A recent analysis performed by MapleLife Analytics showed AVS LE
extensions resulting in a convergence of AVS and Fasano LEs while
21st LEs are, on average, 30 months shorter than Fasano and AVS.
The Report concludes that LEs reflect “meaningful and consistent differences” across long time periods and age
bands and points out that “investors who base their purchase and retention decisions on LE reports without awareness
of the differences in the underlying patterns will not achieve the results they expect”.
Fasano Proposes That Life Expectancy Underwriters Publish Unadjusted Post 2008 A/E Results
At the Spring 2012 LISA (Life Insurance Settlement Association) Meeting, Mike Fasano, President of Fasano Associates, proposed that Life Expectancy underwriters agree to publish their post 2008 Actual to Expected performance on an unadjusted basis – based on actual life expectancy estimates given to clients and based on the mortality tables used in developing their estimates.
In his presentation on a panel of the 4 major life expectancy underwriters, Fasano argued that adjusted or “current basis” Actual to Expected results were inherently misleading and did not reconcile with the large life expectancy spreads that still exist in the market. He noted that the last major changes in life expectancy mortality tables and methodologies were implemented in 2008, almost four years ago, and that therefore there was no need to perform any kind of adjusted A to E analysis for the period subsequent to 2008.
Fasano also proposed that life expectancy underwriters share all their mortality ratings and life expectancy estimates with an independent third party for the purpose of publishing the spreads in life expectancy that exist in the market.
Said Fasano: “These two actions would bring more transparency to the market than any of the proposals that have been put forth thus far.”
Fasano presented Fasano Associates’ Actual to Expected results for the period July 1, 2008 through March 31, 2012,
assuming no IBNR (incurred but not reported deaths) and based on a 7% IBNR assumption:
Fasano releases 99% Actual to Expected Ratio for 2005-2010
Fasano Associates has just released the latest independent actuarial analysis of its Actual to Expected (A to E)
performance, including an Actual to Expected ratio of 99% for the 2005 through 2010 time period, based on the ACTUAL
life expectancy estimates given to its clients.
Poor Underwriting Practices Spark Life Settlement Losses
Rajiv Rebello, a fellow of the Society of Actuaries, a member of the Academy and a Chartered Enterprise Risk Analyst, has written
an article titled "Poor Underwriting Practices Spark Life Settlement Losses". He is a principal of Colva Insurance Services in San Diego.
His email address appears at the conclusion of the article. Mr. Rebello's comment "Discounting historical results in favor of better
expectations of future mortality offer life settlement investors a false sense of confidence in the accuracy of the underwriting", captures
the essence of today's industry discussion. Click here to read entire article.
Michael Fasano authors chapter on life settlement underwriting
A Publication for Professional Traders and Institutional Investors.
LIFE MARKETS --- Trading Mortality and Longevity Risk with Life Settlements and
Michael Fasano Adds Underwriting Expertise to New Book on Reverse Mortgages -- Pens Chapter Four on Underwriting Reverse Mortgages
An Institutional Investors Guide to the Burgeoning Field of Reverse Mortgage Securitization.
REVERSE MORTGAGES and LINKED SECURITIES: The Complete Guide to Risk, Pricing, and Regulation by
Vishaal B. Bhuyan is a collaborative effort of many of the leading minds in the Home Equity Conversion
Mortgages (HECM) industry, including reverse mortgage lenders, institutional investors, underwriters,
attorneys and regulators.
ALEC - Fasano's Automated Life Expectancy Calculator
Developed to be used as a SCREENING TOOL for life settlement acquisitions and to assist
individuals in financial planning applications. A "user friendly" tool that does not require the
assistance of underwriters OR other professionals to complete. Not a replacement for the
"real thing" BUT an inexpensive way to assess case value - easy to use while providing good risk
discrimination. To try "ALEC", click on the link in the left sidebar.