Chapter 48 page 6 says: “As well as data on the feature being assessed, it is necessary to have data on the exposed to risk, divided into the same cell structure as the experience data. An analysis of experience is not valid unless experience and exposed to risk are matched.” Here is what I understood using an example. If I am analysis mortality and I have the claims data split by say, smoker and non-smoker (amongst age, sex, duration inforce, for example), then the base policy data should also have smoker/non-smoker data field, else I will not be able to monitor the experience by this factor. Please let me know if I missed something.
