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Laying down the law

In actuarial terminology, a mortality "law" is simply a parametric formula used to describe the risk. A major benefit of this is automatic smoothing and in-filling for areas where data is sparse. A common example in modern annuity portfolios is that there is often plenty of data up to age 75 (say), but relatively little data above age 90.

Written by: Stephen RichardsTags: Filter information matrix by tag: log-likelihood, Filter information matrix by tag: mortality law, Filter information matrix by tag: CMI, Filter information matrix by tag: Gompertz-Makeham family