Mortality and morbidity tables are statistical tools used by insurance companies to estimate the probability of death or illness among a given group of people. These tables provide a way for insurers to assess the risks associated with providing coverage to individuals or groups, and to determine appropriate premiums.
Here are some key features of mortality and morbidity tables:
• Mortality tables: These tables provide estimates of the probability of death at different ages. Insurers use this information to determine how long a person is likely to live, and therefore how much they will need to pay out in benefits over time. Mortality tables are typically based on data from large populations and take into account factors such as gender, occupation, and lifestyle habits.
• Morbidity tables: These tables provide estimates of the probability of illness or disability at different ages. Insurers use this information to assess the likelihood that a policyholder will make a claim due to illness or disability. Morbidity tables take into account factors such as pre-existing conditions, family history, and lifestyle habits.
• Combined tables: Some mortality and morbidity tables combine information about both death and illness to provide a more comprehensive assessment of risk. These tables are often used in the underwriting of life and health insurance policies.
• Actuarial calculations: Mortality and morbidity tables are used in actuarial calculations to determine the expected costs of providing coverage to a particular group of individuals. These calculations take into account the probabilities of death and illness, as well as other factors such as inflation and investment returns.
• Updating tables: Mortality and morbidity tables are regularly updated to reflect changes in population demographics, medical advances, and other factors that may affect risk. Insurers use the most up-to-date tables available to ensure that their premiums and benefits are appropriate for the risks they are assuming.
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