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Ultimate Mortality Table

What is 'Ultimate Mortality Table'

A mortality table that lists the death rates of insured persons of each sex and age group and excludes data from policies that have been recently underwritten. An ultimate mortality table also lists the proportion of individual survival from birth to any given age. Insurance companies use these tables to price insurance products and ultimately the profitability of these insurance companies depend upon correct analysis of the table.

Explaining 'Ultimate Mortality Table'

By removing the first few years of life insurance data from the table, the ultimate mortality table more accurately shows the rate of mortality after removing selection effects. People who just received life insurance will have usually just had a medical exam and are relatively healthy and so this table attempts to remove that effect.

The calculation of an ultimate mortality table affects insurance requirement reserves and proper pricing by insurance companies. Along with death and survival rates amongst age groups and sexes, mortality tables can also list survival and death rates in relation to weight, ethnicity and region.


Further Reading


Financial innovation for an aging world
www.nber.org [PDF]
… reinsurance, guarantees, derivative contracts on residential property price indices, mortality swaps, and securitization of longevity risk … assets at all. 6 Tables 1 and 2 here … theoretical and empirical literature in the economics and finance fields. While theoretical studies …

Bootstrapping parametric models of mortalityBootstrapping parametric models of mortality
www.tandfonline.com [PDF]
… reinsurance, guarantees, derivative contracts on residential property price indices, mortality swaps, and securitization of longevity risk … assets at all. 6 Tables 1 and 2 here … theoretical and empirical literature in the economics and finance fields. While theoretical studies …

80 will be the new 70: Old‐age mortality postponement in the United States and its likely effect on the finances of the OASI program80 will be the new 70: Old‐age mortality postponement in the United States and its likely effect on the finances of the OASI program
onlinelibrary.wiley.com [PDF]
… reinsurance, guarantees, derivative contracts on residential property price indices, mortality swaps, and securitization of longevity risk … assets at all. 6 Tables 1 and 2 here … theoretical and empirical literature in the economics and finance fields. While theoretical studies …

Modelling and management of mortality risk: a reviewModelling and management of mortality risk: a review
www.tandfonline.com [PDF]
… reinsurance, guarantees, derivative contracts on residential property price indices, mortality swaps, and securitization of longevity risk … assets at all. 6 Tables 1 and 2 here … theoretical and empirical literature in the economics and finance fields. While theoretical studies …

Potential early phase success and ultimate failure of economic sanctions: A VAR approach with an application to IranPotential early phase success and ultimate failure of economic sanctions: A VAR approach with an application to Iran
journals.sagepub.com [PDF]
… reinsurance, guarantees, derivative contracts on residential property price indices, mortality swaps, and securitization of longevity risk … assets at all. 6 Tables 1 and 2 here … theoretical and empirical literature in the economics and finance fields. While theoretical studies …

Impact of performance‐based financing in a low‐resource setting: a decade of experience in CambodiaImpact of performance‐based financing in a low‐resource setting: a decade of experience in Cambodia
onlinelibrary.wiley.com [PDF]
… reinsurance, guarantees, derivative contracts on residential property price indices, mortality swaps, and securitization of longevity risk … assets at all. 6 Tables 1 and 2 here … theoretical and empirical literature in the economics and finance fields. While theoretical studies …

The double emergence of the modified internal rate of return: The neglected financial work of Duvillard (1755–1832) in a comparative perspectiveThe double emergence of the modified internal rate of return: The neglected financial work of Duvillard (1755–1832) in a comparative perspective
www.tandfonline.com [PDF]
… reinsurance, guarantees, derivative contracts on residential property price indices, mortality swaps, and securitization of longevity risk … assets at all. 6 Tables 1 and 2 here … theoretical and empirical literature in the economics and finance fields. While theoretical studies …

Global estimates of the burden of injury and illness at work in 2012Global estimates of the burden of injury and illness at work in 2012
www.tandfonline.com [PDF]
… reinsurance, guarantees, derivative contracts on residential property price indices, mortality swaps, and securitization of longevity risk … assets at all. 6 Tables 1 and 2 here … theoretical and empirical literature in the economics and finance fields. While theoretical studies …

End-stage renal disease and economic incentives: the International Study of Health Care Organization and Financing (ISHCOF)End-stage renal disease and economic incentives: the International Study of Health Care Organization and Financing (ISHCOF)
link.springer.com [PDF]
… reinsurance, guarantees, derivative contracts on residential property price indices, mortality swaps, and securitization of longevity risk … assets at all. 6 Tables 1 and 2 here … theoretical and empirical literature in the economics and finance fields. While theoretical studies …



Q&A About Ultimate Mortality Table


Why do insurance companies use these tables?

Insurance companies use these tables to price insurance products.

How does the ultimate mortality table differ from other types of mortality tables?

The ultimate mortality table differs by removing early life insurance data from the table. This allows for more accurate analysis of later life survival rates.

What are some ways in which this type of mortality table can be used?

Ultimate Mortality Tables can be used to calculate proper pricing by insurance companies, as well as reserve requirements for death and survival rates amongst age groups and sexes, survival and death rates in relation to weight, ethnicity, region etc...

What is an ultimate mortality table?

An ultimate mortality table is a mortality table that lists the death rates of insured persons of each sex and age group, and excludes data from policies that have been recently underwritten.