The UK Actuarial Profession, the umbrella group for the country's actuarial governing bodies, has released its latest Continuous Mortality Investigation (CMI) unit's paper detailing its proposed stochastic methodologies for projecting longevity.
Building on past papers and discussions, the paper summarises and comments on the key features of past academic work in the field, such as the Lee-Carter method of stochastic mortality projection. Regulatory developments have highlighted the need for a measure of the uncertainty associated with projections, says the CMI unit. The latest paper seeks to address the uncertainties relevant to the methodologies, such as parameter uncertainties. The organisation is seeking written comments on the proposed methodologies by the end of August.