• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

CT5- Reverse Selection

Bharti Singla

Senior Member
Hi all
Here's the screenshot of solution to qus. 1.13 of Q&A part1. I am not getting properly what they have written here. Could anyone please explain im what cases the mortality can be higher during select period than the ultimate mortality ?

Thanks
 

Attachments

  • IMG_20170814_131056.jpg
    IMG_20170814_131056.jpg
    149.8 KB · Views: 15
The example I think of is ill health retirement from a pension scheme. So, at the start of their retirement, the average mortality will be relatively high. The very sickest people die soon after retirement, so that a few years later the average health of the remaining pensioners will be improved. So the mortality reduces (all else being equal) the further from retirement you are. Retirement here is the selection date.
 
The example I think of is ill health retirement from a pension scheme. So, at the start of their retirement, the average mortality will be relatively high. The very sickest people die soon after retirement, so that a few years later the average health of the remaining pensioners will be improved. So the mortality reduces (all else being equal) the further from retirement you are. Retirement here is the selection date.

Thank you sir :)
 
Back
Top