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Consideration of Marital Status in a Mortality Model and its Application for Mortality Risk Management

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  • Kwon Hyuk-Sung

    (Department of Statistics and Actuarial Science, Soongsil University, 369 Sangdo ro Dongjak gu Baird hall room 509 Seoul 156-743, Korea (Republic of))

Abstract

As a variety of mortality risk factors have been identified by previous studies, it is desirable that these factors are reflected in mortality (longevity) risk assessments for life insurance, individual annuities, and pension plans. In this study, an extended traditional mortality table that accommodates marital status, which is one of the important risk factors in terms of mortality, is considered. A logistic regression method is used to model the mortality of groups of people with four different marital statuses–never married, married, widowed, and divorced. The analyses are based on data regarding mortality and changes of marital status in Korea. The results of the analyses that are based on the developed mortality model suggest that the information on risk factors must be reflected in an actuarial model to improve the evaluations and monitoring of risk for the portfolios of relevant insurance products.

Suggested Citation

  • Kwon Hyuk-Sung, 2016. "Consideration of Marital Status in a Mortality Model and its Application for Mortality Risk Management," Asia-Pacific Journal of Risk and Insurance, De Gruyter, vol. 10(2), pages 193-216, July.
    • Handle: RePEc:bpj:apjrin:v:10:y:2016:i:2:p:193-216:n:2
    DOI: 10.1515/apjri-2015-0018
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    References listed on IDEAS

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    1. Ken Smith & Norman Waitzman, 1994. "Double jeopardy: Interaction effects of marital and poverty status on the risk of mortality," Demography, Springer;Population Association of America (PAA), vol. 31(3), pages 487-507, August.
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