SOA_FAP_Mod7Exercise01-04ModelSolutionSpreadsheet_050509 (1).xls

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Module 7 - Group Life Exercise - Task 3ANSWERMutualOne existing block of business data (last 5 years)Mortality Rates/ 1000 CoverageAge BandMFtotal15-190.150.020.0856,000 2.4320-240.10.030.065300,000 1.2425-290.080.040.06480,000 1.0030-340.060.060.06600,000 0.7535-390.080.060.071,200,000 0.7840-440.120.080.11,800,000 1.0045-490.150.090.12600,000 0.8050-540.30.20.25600,000 1.0055-590.50.280.39300,000 0.920.9170.9080.90660-640.80.20.560,000 0.7765-6910.80.915,000 0.7270+21.21.66,000 0.78Avg0.125,967,000 Industry data - Trended to curr YrMFtotal15-190.050.020.03510,000,000 0.04720-240.080.0250.052520,000,000 25-290.080.040.0640,000,000 30-340.090.070.0850,000,000 0.08535-390.10.080.0960,000,000 40-440.120.080.180,000,000 0.12145-490.20.10.1560,000,000 50-540.30.20.2550,000,000 0.33855-590.550.30.42550,000,000 60-640.90.40.6520,000,000 65-691.60.91.2510,000,000 1.38370+2.61.52.052,000,000 0.21452,000,000 GreenCo Experienceyear 1year 2year 3year 4year 5avg y1-y5< 250.040.060.080.040.060.0568,000 0.825-290.090.120.070.40.080.15224,000 0.830-390.070.50.20.320.070.23232,000 0.440-490.120.110.020.120.10.09432,000 0.350-590.30.30.40.350.480.36632,000 0.260-640.6510.650.90.620.76416,000 0.165+2.51.511.2103.244,000 00.260.370.250.370.490.35148,000 0.378378Mortality Improvement by Age - SOA study dataIndustry Factors - MutualOne Rate ManualBlue collarMF15-190.0%0.0%0.00015-191.20.830.81.12720-24-1.0%0.6%0.00020-241.250.800.81.16025-29-1.0%0.6%0.00025-291.250.800.81.16030-34-2.5%-0.1%-0.00130-341.150.870.40.98235-39-2.0%1.5%0.00035-391.150.870.40.98240-44-0.2%2.0%0.00140-441.20.830.30.94345-491.1%2.4%0.00245-491.220.820.30.94050-541.4%1.6%0.002

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