On page 6 of ch 17, 3rd para, the core reading states "If adjusted rates are to apply to a class of lives which is expected to have a different experience from that to which the analysed data relate, then further adjustments need to be made." My question is, don't the adjusted rates already reflect the different experience the class of lives (to which these rates will apply) is expected to have? Isn't that the reason why there was an adjustment in the first place? So why is a further adjustment required?
Chapter 17 - Mortality rates The first adjustment is to a standard table, so we might say , for example, industry-wide experience for term assurances is 94% of some standard table. (In reality, this percentage might vary with age.) The further adjustment mentioned is to reflect the fact that we expect our experience to be lighter than industry average, say, because we have stricter underwriting.
