Aggregate Mortality Table

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Definition: Aggregate Mortality Table

The Aggregate Mortality Table is ssed in the insurance industry to measure and ensure solvency of insurance companies, given their portfolio mix and to identify the optimal amount of insurance to give as well as pricing the same using mathematical models. It includes death rates of purchasers of life insurance without any further classification on the basis of age or time of purchase.

It is the data on the rate of death among a group of people profiled on the basis of factors like age, occupation etc. as collected by the insurance agencies.

The table is constructed using data on past incidence, risk assessment, identifying various drivers and how they are expected to change (like life expectancy).

In practice these tables are constructed by studying the severity and incidence of recent, past events allowing for developing expectations about how the factors that drive these events change across time as well as about the amount and timing of these events to be expected in the future.

Also referred to as mortality tables or morbidity tables.



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