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.
Changing the mortality assumption will vary the projected population of older people between 492,800 and 657,600 if the low or high mortality assumptions are used instead of the current principal projection which would result in 575,600 older people in 2060.
The first scenario uses a common mortality assumption, and the second scenario accounts for smoking-attributable mortality in calculating the NMSSTR.
We did this to insure that subsequent modifications examining the model's sensitivity to the mortality assumption could be attributed to the effects of the assumption itself rather than to other unspecified differences between the two versions.
The American Council of Life Insurers (ACLI) said it was "very disappointed" that the key task force involved in setting standards adopted amendments to override the mortality assumption setting proposal developed by the American Academy of Actuaries' (AAA), in a letter to Mike Boerner, chair of the NAIC Life Actuarial Task Force (LATF) and the lead Texas actuary.
Typically, the variant projections include high, low and/or medium assumptions for fertility and migration and a single mortality assumption.
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.