Department of Finance

 

Date of this Version

2002

Document Type

Article

Citation

Journal of Actuarial Practice 10 (2002), pp. 229-242

Comments

Copyright 2002 Absalom Press

Abstract

The paper considers a model that allows the actuary to measure the riskiness connected to the randomness of projected mortality tables in evaluating a portfolio of life annuities, obtaining a measure to reflect the risk associated with the randomness of the projection. The coherence of the risk parameters with the specific nature of the considered risk sources is also discussed. Numerical examples illustrate the results, showing the importance of the risk components in terms of the number of policies and comparing measure tools obtained by means of two procedures.

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