We adjusted the mortality tables for a leading insurer
Case Studies / Insurance / Understand and Manage Mortality Risk
A large life insurance carrier wanted to align their mortality tables to their actual experience. However, they were constrained by availability of adequate experience data.
Our goal was to closely align mortality tables with actual experience to find pockets of opportunity to modify pricing, set expectations and improve reserve estimation.
We developed an analytical framework to estimate adjustments to existing mortality tables that align most closely with the actual experience of the carrier.
By adjusting mortality tables, we were able to develop a tighter pricing model that more closely matched the insurer’s actual experience. 55% of the mortality book had expectations reset by up to 10%. 24% had expectations reset by up to 25%.