As in the currently used mortality tables
, the new tables would be gender-distinct, because of significant differences between expected male and female mortality.
The first, and very important, step to this end is to select a mortality table
for the life being settled.
The 1-year individual probability of death for a person age x is obtained by multiplying an individual differential mortality factor d with the probabilities of death [q'.sub.x] of a deterministic mortality table
* The News: Life insurers can base new products on their choice between two mortality tables
The random number of survivors [l'.sub.x+t+1] at time t + 1 is conditional on last period's survival number [l'.sub.x+t], the shock parameters [[epsilon].sub.t], and the mortality table
random parameters [v.sub.t]:
Figure 3 illustrates the time series behavior of the VPD over the sample period, using the government of Canada bond term structure of interest rates together with the annuity mortality table
. The (government) VPD's range from 0.93 in the early part of the sample, to approximately 1.00 in the late eighties and early nineties, and then back to 0.90 towards the end of the sample.
For the liabilities of young insureds, the decrease in longevity risk can be substantial, but it depends on the period or cohort mortality table
and whether to include model risk or not which of the policies p = R, P, S, or F leads to the lowest longevity risk in the liabilities for younger individuals.
Considerations in Choosing a Mortality Table
with Appropriate Slope
"The new SOA mortality table
shows accelerated improvement in longevity.
This mortality table
will be used by the life insurers to determine the minimum actuarial reserve for the insurance policyholders' liabilities for the purpose of solvency regulations as well as for financial reporting purpose.
This probability can be obtained from a standard Mortality Table
used in insurance and pension fund markets.
Calderdale is 117th in the premature mortality table
of 150 English councils with 317.4 premature deaths per 100,000.