Unformatted text preview: Module 9: Standardization and new developments
The standardized mortality ratio 1 Introduction: Single Index Approach
2 Crude Mortality rate
3 Directly standardized mortality rate
4 Indirectly Standardized Mortality Rate
5 The standardized mortality ratio
6 More advanced mortality models 14/15 Actuarial Statistics – Module 9: Standardization and new developments
The standardized mortality ratio The standardized mortality ratio
The standardised mortality ration is deﬁned as
the indirectly standardized mortality rate
the crude mortality rate in the standard population
sEc sm
x ,t
x ,t x x = c
Ex ,t s mx ,t x
x = 14/15 sEc
x ,t c
Ex ,t mx ,t ÷ x sEc sm
x ,t
x ,t x sEc
x ,t = c
Ex , t m x , t
cs
x Ex , t m x , t
x Actual Deaths in population
Expected deaths in population using standard mortality A value of the ratio less than 1 indicates a population with
mortality lighter than in the standard population.
A value of the ratio greater than 1 indicates a population
with mortality heavier than in the standard population. Actuarial Statistics – Module 9: Standardization and new developments
More advanced mortality models 1 Introduction: Single Index Approach
2 Crude Mortality rate
3 Directly standardized mortality rate
4 Indirectly Standardized Mortality Rate
5 The standardized mortality ratio
6 More advanced mortality models 15/15 Actuarial Statistics – Module 9: Standardization and new developments
More advanced mortality models LeeCarter model Lee, R., and L. Carter (1992) Modelling and Forecasting US
mortality (J Amer. Stat. Assoc)
Time series based model to forecast mortality
Considers the central death rate m (x , t )
Model is
ln (m (x , t )) = a (x ) + b (x ) k (t ) + ε (x , t )
Their work started a large amount of research for “stochastic
mortality modeling” 15/15...
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