A study of the mortality rates and trends of the insured population in Singapore its impact on life insurance.

Abstract

It is well known that people are now living longer. The main purpose of our research is to study the effect of mortality improvements on insurance pricing and reserving. The actuarial bodies of the United States and the United Kingdom regularly monitor the current mortality level in their respective countries and carry out studies that focus on changes in insurance pricing and reserving in light of expected changes in the current mortality level. Mortality improvements, if recognised in insurance pricing and reserving can either result in an increase or decrease in the current level of premiums and reserves, depending on whether they are applied to ordinary assurance or annuity plans. The purpose of this study is to examine the mortality differentials (1) between persons in the assured and general populations and (2) among the various sub-groups in the assured population, project the mortality rates of assured lives and analyse the possible changes in insurance cost and reserves and project the mortality rates of annuitants and analyse the possible changes in annuity pricing and reserving.