VaR for longevity trend risk

Last month Stephen, Iain and Gavin presented their paper on putting longevity trend risk into a one-year, value-at-risk (VaR) framework.  The presentations were made to audiences of actuaries in Edinburgh and London, and the video of the London debate is now available online.  Copies of the opening speech and slides are available for download on the right.

On a related note, InsuranceERM has also published an article on the VaR framework, which is summarised in an earlier posting.

Previous posts

Graduation

Graduation is the process whereby smooth mortality rates are created from crude mortality rates.  Smoothness is an important part of graduation, but another is the extrapolation of mortality rates to ages at which data may be unreliable or even non-existent.
Tags: Filter information matrix by tag: graduation, Filter information matrix by tag: extrapolation by age, Filter information matrix by tag: smoothing, Filter information matrix by tag: splines

Correlation complications

A basic result in probability theory is that the variance of the sum of two random variables is not necessarily the same as the sum of their variances.
Tags: Filter information matrix by tag: cause of death, Filter information matrix by tag: correlation, Filter information matrix by tag: covariance

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