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.
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The result mainly reflects positive impact from mortality assumption changes as well as a reduction in expenses largely due to no increase in the German Insurance Business litigation provision.
Another very important assumption is the extent to which mortality improvement is factored into the pricing (i.e., the reinsurer's mortality assumption for your business).
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.
It's a common misconception that LTC pricing "mistakes" are primarily because the LTC insurance industry failed to price for people living longer (mortality assumption) and therefore they would be more likely to go on claim (morbidity assumption).
The first scenario uses a common mortality assumption, and the second scenario accounts for smoking-attributable mortality in calculating the NMSSTR.
Sensitivity of model predictions to violations of density-independent mortality assumption
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.
Thus, the 1-year survival probability can be calculated as [MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII] under a constant force of mortality assumption. Let [MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII] denote the n-year survival probability that an [x.sub.0]-aged person in calendar year to reaches age [x.sub.0] + n.
As only one mortality assumption is used in Ireland, it is not possible to assess from the published data the extent to which the contrast reflects differences in the assumptions adopted for improvements in mortality.
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.
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.