Mortality Progression Methods and Systems

摘要

Methods and systems for preparing improved mortality tables for use with life insurance and other financial products are described herein. The improved mortality tables described herein account for progression over time of insureds from one underwriting class to another, e.g., based on deteriorating health over time. An insured who is in a “preferred” class at the time of initial underwriting might not still qualify for “preferred” status in 5 years, or even the next year. By creating a system of linear equations that predict the composition of a group n years after underwriting, insurance (and other financial products) providers can calculate more definite costs for pricing financial products based on the estimated or expected transition from one underwriting class to another.

主权项

1. A system comprising:
a processor; and memory storing data and computer-executable instructions, which when executed by the processor, cause the system to perform:
determining an original distribution of mortality for each of a plurality of underwriting classes of a plurality of people underwritten for a financial product, by analyzing the data stored in the memory;projecting a future distribution of mortality corresponding to each original distribution based on a predetermined set of progression tables that model an expected movement of insureds from one underwriting class to another over time;storing the tables in the memory;analyzing the projected future distributions of mortality to predict a percentage of insureds in each underwriting class likely to accept a product offering associated with the financial product; andgenerating a cost for the product offering based on the predicted percentages of insureds in each underwriting class likely to accept the product offering.