Information Matrix

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.

Actuaries have a long-standing habit of using different terminology to statisticians. This page lists some common terms used by actuaries in mortality work and their "translation" for a non-actuarial audience. The terms and notation are those used by actuaries in the UK, but in every country I have visited the local actuaries have used similar notation.

Table 1. Common actuarial terms and their definition for statisticians.