Mortality experience in the elderly in the Impairment Study Capture System.

Area of Science:

• Actuarial science
• Mortality studies
• Insurance underwriting

Background:

• Analyzing mortality experience in older policyholders is crucial for accurate risk assessment.
• Understanding underwriting impacts on mortality provides insights into insurance product viability.

Purpose of the Study:

• To evaluate mortality experience and underwriting effectiveness for life insurance policies issued at ages 70 and above.
• To examine mortality ratios based on smoking status, underwriting type, and policy duration.

Main Methods:

• Utilized the Impairment Study Capture System dataset.
• Analyzed policy data from 1990-1998 with 5-12 years of observation.
• Calculated mortality ratios, differentiating by smoking status and underwriting class.

Main Results:

• Observed a significantly higher mortality ratio for smokers compared to nonsmokers, despite adjusted expected mortality.
• Confirmed the intended effects of underwriting through analysis of different underwriting types and risk classes.
• Mortality ratio variations by duration post-issue were consistent with the 2001 VBT select period slope.

Conclusions:

• Smokers aged 70+ exhibit elevated mortality risk in life insurance.
• Underwriting practices effectively differentiate risk classes and influence mortality outcomes.
• The study validates established mortality tables for older policyholders.