Our client is a recognized leader in insurance, annuities, and employee benefit programs, with 100 million customers in over 50 countries.
Pension fund liability fluctuates due to many factors with longevity being one of the prime drivers. As the mortality tables are updated only once in a decade and it is for the overall population, the client’s pension risk transfer team wanted to develop a better solution for longevity prediction for improved and effective pricing. The client wanted to:
— Improve mortality rate predictions using a predictive model
— Leverage external data for mortality rate prediction
— Explore advanced modeling methods and run multiple experimentations to boost performance
30%+ improvement in mortality rate prediction
Improved and more effective pricing as mortality rate was one of the key inputs in pension risk transfer pricing