Strengthening the basis

Discussion in 'SP2' started by kd3010, Apr 15, 2015.

  1. kd3010

    kd3010 Member

    Please can someone confirm my understanding of 'strengthening' the basis?

    When looking at the mortality basis for an annuity, if the basis was to be strengthened, future mortality rates would be reduced

    When looking at the mortality basis for a TA, strengthening the basis would mean increasing future mortality rates

    i.e. strengthening the basis adds prudence

    Thanks
     
  2. Lynn Birchall

    Lynn Birchall ActEd Tutor Staff Member

    Hi

    Yes, that's it exactly :D

    Lynn
     

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