Underlying Mortality Assumption
- An estimation and projection of death rates that is used by actuaries in order to calculate insurance premiums and/or pension obligations. Also known as the "mortality assumption", underlying mortality assumptions are determined by actuaries, using mortality tables, following strict guidelines set by insurance and pension regulators.
Related Terms and Acronyms
- Actuarial Table — Definition,
- A table used in actuarial science that outlines the statistical probability that an individual of a specific age and sex will die within a year.
- Mortality Rate — Definition,
- A measurement of how many people in a particular population set and in a particular period of time die.
- Risk Class — Definition,
- A number of people who are grouped together because they pose similar levels of risk to an insurance company.
- Selection Bias — Definition,
- A statistical error made when non-random data is added into a dataset.
- Survival Analysis — Definition,
- A statistical analysis of how likely someone or something will survive to a set date.
- Yearly Probability of Dying — Definition,
- The likelihood that an individual of a certain age and gender will die within a year.
- Yearly Probability of Living — Definition,
- The likelihood that an individual of a certain age and gender will still be alive after a year has passed.