Mortality Assumption

Mortality Assumption

A statistical estimate of the number of deaths a life insurance company expects to occur over a given period of time. The mortality assumption influences the underwriting decisions an insurer makes.
References in periodicals archive ?
Prior to the reinsurance utilization decline, cessions had been driven more by perceived mortality assumption arbitrage and by the desire to manage capital strain associated with Triple-X statutory reserve requirements introduced in 2000.
The first scenario uses a common mortality assumption, and the second scenario accounts for smoking-attributable mortality in calculating the NMSSTR.
The number of possible combinations is commonly reduced (whether intentionally or not) by restricting the number of assumptions, often by including only one mortality assumption on the grounds that differences in mortality have little effect on the population outcome.
However, as columns 7 and 8 show, the prior mortality assumption of 15 years and 18.
In fact, the term sometimes takes on a life of its own as opposed to understanding exactly how it should be viewed in the setting of the overall mortality assumption.
That is, whatever the baseline deterioration assumption is, if premiums are lowered to produce more persisters, the new mortality assumption must make sense.
Best will monitor whether the pricing and mortality assumption of this book of business remain adequate once this transaction has been finalised.
There's also a tendency for insurers to compete for younger insureds, so the mortality assumption is "really aggressive.
Business written 10 to 15 years ago had a less optimistic mortality assumption than business written today.
Yet earlier studies examining the impact of inappropriate mortality assumptions on pension liabilities have largely focused on corporate plans rather than public sector plans (see Antolin, 2007; Pitacco et al.