lapse rate


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Related to lapse rate: Environmental lapse rate, normal lapse rate

lapse rate

[′laps ‚rāt]
(meteorology)
The rate of decrease of temperature in the atmosphere with height.
Sometimes, the rate of change of any meteorological element with height.

lapse rate

The rate of decrease of an atmospheric variable with height. However, the term normally refers to the fall of temperature with height. The three types of lapse rates referred to in meteorology are dry adiabatic lapse rate, saturated adiabatic lapse rate, and environmental lapse rate. See also dry adiabatic lapse rate, saturated adiabatic lapse rate, and environmental lapse rate.
References in periodicals archive ?
Renshaw and Haberman (1986) find an additional significant interaction between policy type and duration of policy, meaning that the lapse rate depends not only on single factors but also on the combination of factors.
The lapse rate on life policies has traditionally been one of the central parameters in the managerial framework for life insurers.
The elasticity of the lapse rate with respect to the health bonus-malus coefficient is negative as expected and very significant (the limit level in a test for nullity is negligible).
For a block of term policies that is entering the post-level period, if one is working from a previous assumption where premium rates and ongoing cumulative lapse rates are relatively high, discussion of lowering premiums to increase persistency certainly makes sense.
They estimate an error-correction model with two cointegrating vectors of the lapse rate ([l.
The Payoff: An ultra-low lapse rate is often a mark of an insurer with excellent operational results.
To examine the incremental effect of lapsing, all lapse rates were kept at their benchmark levels and all price and risk elasticities were set at zero.
Conversely, if lapse rates in ultimate durations are less than were assumed in the pricing process, the profitability of the product will suffer.
Understanding the dynamics of the lapse rate is important to insurance companies.
Lapse rate results are summarized in Panel C of Table 4.
Because mutuals work on the basis of dividends, they have lower lapse rates, according to Wagner.
Although Fidelity Life has been profitable over the past five years, experience profits were negative in 2009, mainly due to the higher than expected lapse rate and unfavorable claim experience from mortality and morbidity risk.