Learn about the importance and components of the actuarial life schedule and its evolution in Britain and the United States
The components of the life insurance table are a specific age group, the number of people who have survived to an age, and the number of people who died between the age group.
The emergence of the actuarial life table began in the United Kingdom when several tables appeared, the first of which was the group that appeared in 1869 and was called the tables of actuaries, the group of insurance chiefs tables that were established on the basis of thirty years of experience from 1863 to 1893, and the group of insurance experts’ tables for pensioners Which was published in 1924, and a set of insurance schedules for government pensioners, which were established on the basis of experience between 1900 and 1920, and finally the schedule that was established on the basis of experience between 1924 and 1929 and which was published in 1934.
History of life in the United States
The Egyptian Insurance Federation indicated in its electronic bulletin that the United States of America witnessed the emergence of several life tables that depend on the experience of American insurance companies. The basis of experience from 1900 to 1915, which appeared in 1918, the ordinary unified schedule of 1941, the schedule of male pensioners for the year 1949, the ordinary unified insurance schedule for the year 1958, and finally the ordinary unified insurance schedule for the year 1968, which is called . 1968 CSO
.
The importance of the actuarial life tables is highlighted, as these tables depend on technical foundations in the actuarial accounts, and their importance as a tool in the life insurance cost calculations is evident in the following: Contributing to the completion and completion of the process of underwriting and reinsurance on an accurate basis, achieving justice in calculating life insurance premiums between insurance premium and risk.
In addition to calculating the arithmetic reserve for the various policies issued by insurance companies on sound basis, the possibility of determining the cost of comprehensive pension insurance in a scientific way and not in an arbitrary way, and in this the fair distribution of the insurance burden on the present and future generations, the possibility of calculating the cost of comprehensive pension insurance for each gender on alone, as the demographic structure of males is different from the demographic structure of females.
The importance of actuarial life tables
Of the importance of the actuarial life tables is also the possibility of determining the reserve for the future by forming a reserve to secure the comprehensive retirement age in the coming years, as it is expected to increase the proportion of the elderly in the future to the total population, the possibility of expanding the application of health insurance so that it becomes a comprehensive insurance for all members of society, and within the framework of It ensures its continued application, when calculating the cost of health insurance through the actuarial table , providing more stable and more predictable results in death rates, which leads to stability in the insurance system.
It also shows the importance of life tables Actuarial in that other methods such as the analysis of each of the regression Regression Analysis and time series Time series and probability distributions Probability distribution is not given good ratings so conducive to the stability of the insurance system for this section, and those methods not suitable in the long term to predict the rates of death Overall, to ensure the accuracy of the results, especially when comparing the expected death rates with the actual death rates, while the actuarial tables provide more stable and more predictable results in death rates, which leads to stability in the insurance system.
The components of life insurance table is the age group specific and the number of people who remained alive until the age , and the number of persons deceased between the age group next to the possibility that someone at the age of x exactly will die before reaching , and the possibility that someone at the age of x exactly will Lived to age , as well as the number of people surviving between age x and age, number of people aged x years and over , life expectancy at age and death rate in an inter- age group.
Installment Calculation Process
Premiums calculation of the different types of contracts wholly dependent yen life on three elements is a probability of life or death to a person that during a certain period at the age of a particular, interest rate Technical Interest Rate which insurance company can ensure that investment of funds collected have on the basis of , downloads Loadings which add insurance company to cover the commissions paid to the producers of general and administrative expenses in addition to the profits that are distributed to shareholders, thus constitutes a life table basis for the premium risk risk Premium is then taken and downloads interest rates into account to calculate the commercial premium Gross Premium .
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