Just a random thought. Almost all life companies in Canada use age nearest. One company uses actual age. So when shopping premiums, that company shows up number one whenever we’re within 6 months of their next birthday.
That means that they must be getting a very heavy load of clients who are closest to their next birthday.
How does that impact them? I think it doesn’t likely make a difference, but I dunno, in large numbers I suppose these things can do weird stuff.
Well, if their products have been ALB while competitors have been ANearB long enough their experience will reflect any skew of folks’ fractional age.
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I figured they’d just have on average a block that’s six months older than others.
Do they take that into account in pricing? Seems like they should but I’ve never actually seen this discussed.
They probably don’t explicitly account for that, it’s just going to emerge in their experience.
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