Mortality projection models can be wrong…
by Stuart McDonald
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Stuart McDonald is Head of Longevity and Demographic Insights and a partner at LCP | ||
Mortality assumptions are central to the valuation of pension funds and life insurance portfolios. Typically, they comprise two parts:
• Assumptions about mortality rates today
• Assumptions about how mortality rates will change in the future
While the first of these assumptions can often be tackled in a relatively data driven manner, the second requires significant judgement.
Disclaimer:
This article represents the opinion of the author, and not necessarily the opinion of the AAE.
This article was published in The European Actuary No. 40 – December 2024
