Mortality Assumption

(redirected from Underlying 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 ?
While the slope of the underlying mortality assumption is a key dynamic for understanding the impact of the mortality improvement assumption, the process for setting the baseline assumption is beyond the scope of this article.
Myles Pink, partner in LCPs insurance de-risking team concludes: Given the uncertainty, pension schemes looking to hedge longevity risks should assess insurer and reinsurer pricing against a range of underlying mortality assumptions when assessing value-for-money and should consider likely supply and demand pressures in the insurance and reinsurance markets when considering whether to remove longevity risk at todays price.