Industry News Archive
Fasano Announces New Automated Life Expectancy Calculator
Leading life expectancy underwriter, Fasano Associates, announced the development of an automated life expectancy calculator. The LE Calculator will be used as a screening tool for life settlement acquisitions and to assist individuals in financial planning applications.
Said Hasan Qureshi, Chief Actuary of Fasano Associates: “Our LE Calculator is very user friendly and does not require the assistance of underwriters or other professionals to complete. We used the considerable experience of our physician Medical Directors to identify those impairment that we know most often result in mortality risks and to develop the underlying debiting logic. Our view is that for an automated LE calculator to be successful it must be easy to use, while still providing good risk discrimination. Our calculator does just that.”
The Fasano Calculator can be used on-line, through Fasano’s website. The fee structure will be both competitive and flexible. The base fee will be $50 per LE calculation. However, users who anticipate the need for multiple calculations can reduce their costs through licensing arrangements. A 3-year $15,000 license reduces the per calculation cost to $25. At a license fee of $25,000, the per calculation cost is only $15. Mike Fasano, President of Fasano Associates, indicated that Fasano would also develop customized applications, for example, to interface with different pricing and valuation models.
Said Fasano: “We don’t think an automated, ‘black box’ model can ever take the place of the kind of thoughtful analysis our physicians put into our regular life expectancy analyses. However, for a quick, affordable screening tool, this is a good choice.”
“We were conservative in developing the calculator. Therefore it will tend to generate somewhat longer life expectancy estimates than the regular Fasano life expectancy reports. We think that is appropriate for a preliminary estimate.”
Fasano reported that The Fasano Calculator will allow discrimination by face amount. “We know that life expectancies tend to be shorter at lower face amounts and longer at high face amounts – the so called income effect. We have built this into our logic, so that our calculator can be used in both blue collar and white collar markets.”
Those interested in a demonstration of the automated Fasano LE Calculator can do so at http://www.fasanoassociates.com/lecalculator, or by calling either Glenn Marshall or Mike Fasano at Fasano Associates (202-457-8188)
About Fasano Associates and the Fasano Associates Life Settlement Conference:
Fasano Associates is a leading underwriting consulting firm serving the life, health and life settlement industries. Fasano’s 6th Annual Life Settlement Conference will be held on Monday, October 26, 2009, in Washington, DC. Early bird discounts are still available.
