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Periodical Payment Orders (PPO)

A feasibility study, with the aim of compiling mortality tables of impaired lives who have suffered the types of traumatic injury that give rise to PPO awards - for example, brain and/or spinal injury following a severe trauma.

Background to the project

The PPO Working Party was established in 2010 to investigate PPOs and their effects on the UK insurance and reinsurance industry. The group has been at the forefront of advising GI actuaries about the impacts on their work, such as the need to use life insurance techniques in reserving. In 2012, the group addressed impaired life mortality (ILM) specific to UK PPO awards.  This is an area identified by the group as worth investigating and is also one of the main concerns of the industry: how different is ILM from general population mortality.

In early 2018 the Periodical Payment Orders Working Party requested funding for commissioned research, in order to commission a feasibility study with the aim of compiling mortality tables of impaired lives who have suffered brain and/or spinal injury following a severe trauma (specific to UK PPO awards). This funding request was approved by the GI Board and subsequently approved by the IFoA's Research and Thought Leadership Board (RTLB) in July 2018. RTLB further agreed that the PPO research should be commissioned through the IFoA’s Actuarial Research Centre (ARC), and that the opportunity to seek external partners to jointly fund and commission the work should be explored. It is intended that the data for the feasibility study will be compiled from the most relevant UK medical research database(s) of patient records as entered by GPs (e.g. THIN, CPRD or such other source as identified via the research) with comparison to overall population statistics from the ONS. If successful, the data will enable more accurate reserving, pricing and capital setting for PPOs.

Given the relevance of this research for industry, we’re also keen to commission and deliver this leading-edge ARC project in partnership with interested parties.

Please read the PPO research project summary for more information on the research project proposal.

Events

ARC event on Periodical Payment Orders (PPOs) 

The ARC hosted a mortality research event on 20th February 2019 at Staple Inn Hall London. This event facilitated an open discussion between industry experts, insurers, healthcare providers and academics who specialise in the development of mortality data. The aim of this event, which was achieved, was to refine the challenges that would be faced in developing mortality tables of impaired lives (who have suffered the types of traumatic injury that gives rise to PPO awards), and the potential solutions available.

A summary of the event, including feedback responses from delegates, is available.

Expected outputs

It is expected that these mortality tables will become a reference point for actuaries and others involved in the management of PPO liabilities when considering the future mortality rates likely to be experienced by PPO recipients (for example for the purpose of calculating reserves). 

Contact Details

If you want more information about our research programmes please contact the IFoA Actuarial Research Centre: arc@actuaries.org.uk.

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Events calendar

  • India Town Hall

    Webinar
    28 January 2021

    Spaces available

    IFoA Immediate Past President John Taylor would like to invite you to the Institute and Faculty of Actuaries’ (IFoA) virtual India Town Hall 2021, hosted by John Taylor with IFoA Council Member Mahidhara Davangere and IFoA Chief Executive, Stephen Mann. 

  • Spaces available

    What are the options for the world economy looking ahead?

    In this Thought Leadership Lecture, Economist, Vicky Pryce, will be discussing world economic trends, including the differences in geographical performance and how output is recovering and where.

  • Spaces available

    Trust and Leadership for Actuaries

    Led by Dr. Jim Baxter, University of Leeds, this webinar introduces some key ideas in the ethics of trust, with a particular focus on those in, or on the path to, leadership roles. Dr Baxter is joined by a panel of experienced leaders who will give their personal perspectives on how they understand the value of trust and how they seek to promote and inspire trust, drawing on their experiences of leadership. The panel includes:

  • Health and Care Hot Topics webinar

    Online webinar
    10 February 2021

    Spaces available

    In this webinar, we have two presentations showing the latest research on the implications for life and health insurers of two key issues: genomics and pandemic risk.

    Dr Peter Joshi and Paul Timmers will share their research on how well-established underwriting processes can allow for genomics in predicting expected mortality and morbidity. They will then discuss the potential for stratified screening and personalised medicine to improve health and reduce claim costs.

  • Spaces available

    As the world’s attention begins to turn to COP26 later this year in Glasgow, Sarah Gordon (Chief Executive, Impact Investing Institute) will share her vision for how the financial services industry can deliver for people and the planet, as well as how to encourage more investment with the intention to generate positive, measurable social and environmental impact alongside a financial return.

  • Sub-Saharan Africa Town Hall

    26 February 2021

    Spaces available

    IFoA Immediate Past President John Taylor would like to invite you to the Institute and Faculty of Actuaries’ (IFoA) virtual SSA Town Hall 2021, hosted by John Taylor with IFoA Council Members Mukami Njeru, Prosper Matiashe and IFoA Chief Executive, Stephen Mann.

  • MENAP Town Hall

    2 March 2021

    Spaces available

    IFoA Immediate Past President John Taylor would like to invite you to the Institute and Faculty of Actuaries’ (IFoA) virtual MENAP Town Hall 2021, hosted by John Taylor and IFoA Chief Executive, Stephen Mann.