Information Matrix

Geodemographic profiles use addresses or postcodes to classify people into groups which are homogeneous with respect to variables like income, housing tenure and life stage.  The original purpose of geodemographic profiles was to improve targeting for marketing purposes. 

We have written extensively about the use of postcodes and geodemographics for mortality modelling.  Two peer-reviewed papers recently presented to the Institute of Actuaries in London have testified to the power of geodemographics when applied to pensioner mortality: Richards (2008) and Madrigal et al (2009).

A phenomenon to watch for is that of the "self-prophesying model".  It occurs when a variable is too specific to the mortality experience of a reference portfolio to have wider application. 

Following my entry on postcode profiling, I have been asked two further questions. The first is whether you have to use Experian's Mosaic system.