On the other hand, gridded climate data sets at high resolution (on the scale of 1-4 km) have been developed from which spatially and temporally varying lapse rates
can be derived.
Cold core convection forms beneath the upper-level low where there are extremely steep lapse rates
. If there is some surface heating and a little residual moisture, showers and possibly storms will develop by afternoon.
In recent years, nearly every long-term care insurance company has had to raise premiums on at least some prior block of their insurance policies, especially those issued ten to fifteen years ago, when policies were priced for the far more favorable interest rates available at the time, and before the industry discovered how low lapse rates
Crocker and Moran (2003) provide theoretical and empirical evidence that lapse rates
fall (i.e., policyholders have higher policy commitment) when health insurance is bundled with employment contracts.
Marquet, 2012: Moist-entropic vertical adiabatic lapse rates
: The standard cases and some lead towards inhomogeneous conditions.
In typical warm-season environments in the United States, the steepest lapse rates
are found between FLO50 and FLI50.
The changes were symptomatic of those that have been occurring in the LTCI market, with insurers hit by low lapse rates
, low interest rates and high medical costs.
In addition to low rates, uncertainty about claims and uncertainty about lapse rates
, another major obstacle continues to be getting consumers and employers to understand and recognize the need for the product.
The downgrade reflects Sumitomo Life's relatively weak capital position, high operating costs, high surrender and lapse rates
and the continuing poor performance of the Japanese economy, Fitch said.
We've addressed the four key risk drivers for the product: Interest earned on investments, lapse rates
, morbidity and mortality.
The results show that product characteristics such as product type or contract age and policyholder characteristics such as age or gender are important drivers for lapse rates
. Our findings improve the understanding of lapse drivers and might be used by insurance managers and regulators for value-and risk-based management.
One of the biggest problems, however, was that lapse rates
were far below what had been projected as people held on to their protection long after purchasing it.