Underlying Mortality Assumption
Definition
- 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.
Synonyms
life-expectancy data
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.
