Questions about stating an appropriate mortality table or basis, are these still in scope? Found a few questions in the smart revise and in the Q&A bank on this, not sure if still relevant? Thanks.
In Chapter 28: Contract design and pricing, page 9, the core reading states in reference to using mortality tables when setting an appropriate mortality assumption: 'Adjustment of a standard table using either any appropriate, reliable, past experience of the company or CMI data or reinsurers' data.' There are examples of standard mortality tables that could be used as a basis for mortality assumptions on pg 10 of chapter 28. There is also discussion on the different mortality projections and how they can be used on pages 20-21 of chapter 27: Risk management and controls. So I suggest the only topics in scope regarding the use of mortality tables are those parts mentioned above. Hope that helps!
Thanks. I see that the mortality tables themselves which are listed in the notes are not part of core reading. I wonder if it would be sufficient to just open the tables book and pick some out from there if they do ask about this?
"Always trying" has given good advice on the parts of the course where mortality tables are examinable. We checked with the profession and they confirmed that you might be asked to provide a set of assumptions for a particular basis (including mortality table, interest rate etc). The Core Reading does not give explicit values for these bases as they change depending on the circumstances. The mortality tables given in the yellow tables are very old and would be bad examples to give in the exam. I think you need to give examples from the appropriate 00 tables instead. Best wishes Mark
As place of last resort it may be better to use the yellow tables so long as you show a hefty adjustment to them. But yes a more modern series would give you much more credibility and be what the examiners are looking for
It's in SA2, Chapter 28, Section 3 "Determining a basis". Suitable mortality tables for the various product types are given on page 10.
No, it was AGES ago (pre SA2 days, I think). That's why we checked with the profession to see if we could remove or cut back our material on mortality tables.
What is trying to be achieved by expecting people to remember mortality table names, form numbers from FSA returns, guidance note references...? Surely in practice you just open up the mortality table library, FSA returns, Guidance notes and read to find what you need in practice... where such things will be defined already for you. No need to recall AM00, GNU999, Form 19a or whatever.
