Question

What is mortality risk primarily concerned with in insurance?

a.

Predicting future mortality rates accurately

b.

Assessing the financial impact of deviations from assumed mortality rates

c.

Minimizing the occurrence of mortality-related claims

d.

Estimating the number of deaths in a population

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (b).Assessing the financial impact of deviations from assumed mortality rates Explanation:Mortality risk in insurance is primarily concerned with assessing the financial impact of deviations from assumed mortality rates. It refers to the risk of actual experience being different from what was assumed in pricing and the significance of that variance.

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