Mortality Laws for Pricing Statutory Nurse and Health Care Policies

14 Pages Posted: 5 Oct 2012

See all articles by Thomas Braun

Thomas Braun

Bielefeld University - Department of Business Administration and Economics

Date Written: October 2, 2012

Abstract

This paper deals with life tables and mortality laws which are insurance businesses’ basic techniques in lifetime modeling. It extends the logistic mortality law which has merits in describing the mortality of the oldest-old so that it allows to differentiate not only with respect to age but to frailty as well. It is proposed to differentiate each age group into different frailty classes and to superimpose a gamma distribution onto these classes which is well-known for its scalability. In the limiting case of an exponential distribution the model is rather easy to calibrate to readily available life table data.

Keywords: heterogenous frailty, life table, mortality law, nurse care insurance, Perks’ law

JEL Classification: G12, G22, G23

Suggested Citation

Braun, Thomas, Mortality Laws for Pricing Statutory Nurse and Health Care Policies (October 2, 2012). Available at SSRN: https://ssrn.com/abstract=2157006 or http://dx.doi.org/10.2139/ssrn.2157006

Thomas Braun (Contact Author)

Bielefeld University - Department of Business Administration and Economics ( email )

P.O. Box 100131
D-33501 Bielefeld, NRW 33501
Germany

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