Question

Why is it important to consider expected changes in mortality rates over time?

a.

To simplify the pricing process

b.

To ensure consistency in mortality rates

c.

To address risks associated with increasing longevity or mortality due to diseases

d.

To reduce operational risks

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).To address risks associated with increasing longevity or mortality due to diseases Explanation:It is important to consider expected changes in mortality rates over time to address risks associated with increasing longevity or mortality due to diseases, ensuring accurate pricing and risk management.

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Q. Why is it important to consider expected changes in mortality rates over time?
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