Effective date: The new mortality tables
would apply for the 2007 plan year.
It should be noted that studies have shown that the impact of choosing one mortality table
or another in projecting the present value of future mortality can produce a swing of up to 20 percent or more in reinsurance
Insurance companies rely on base mortality tables
when pricing annuities, using the historic experience of their insureds and/or industry tables developed by the Society of Actuaries.
The SECP had notified amendments to the 2002 SEC (Insurance) Rules on January 9, 2012, which, inter alia, mentioned that the Pakistan Society of Actuaries (PSOA) would recommend a mortality table
to be used as a part of the minimum valuation basis to determine the actuarial liabilities of insurance policyholders, says a statement issued by the Commission here today.
In choosing an appropriate mortality table
, it was assumed that the mortality of the lowincome population would be compromised by poorer health, fewer years of education, lower income, inadequate housing and so on (Waldron, 2007).
The new mortality table
will be based on 2004-2008 data.