04 August 2006
The Actuarial Profession has announced its adoption of new
mortality tables based on experience during 1999-2002 for various
groups of insurance company clients in the UK.
The new tables were produced by the Continuous Mortality
Investigation (CMI), a research organisation of the Actuarial
Profession. The tables were published in draft form in 2005 and
minor adjustments were incorporated in the final version to reflect
feedback received from actuaries. The new mortality tables (the
"00" Series) are based on experience during 1999-2002 for various
groups of insurance company clients in the UK. The previous tables
were the "92" Series, based on experience during 1991-1994. Use of
the tables by actuaries is not mandatory.
Previous sets of tables have incorporated projections of future
mortality, but this has not been done with the latest tables
because of the uncertainty surrounding future improvements. The CMI
has been undertaking significant research into possible methods of
projecting mortality. This research is continuing, but it is not
currently expected that this work will lead to adoption of a
specific projection basis by the Actuarial Profession. Instead the
profession is saying that actuaries - and other professionals using
mortality projections - should consider a range of scenarios.
There are important financial implications of any improvement in
mortality. For pensioners, improved mortality rates mean spending
longer in retirement and the latest tables show why many
commentators have been calling for retirement ages to increase.
