First-Order Mortality Rates and Safe-Side Actuarial Calculations in Life Insurance

In this paper, we discuss how to define conservative biometric bases in life insurance. The first approach is based on cumulative hazard (or survival probabilities), the second one on the hazard itself, and the third one on the rate of increase of the hazard. The second case has been studied in the literature and the sum-at-risk plays a central role in defining safe-side requirements. The two other cases appear to be new and concepts related to sum-at-risk are defined.

Keywords: Variations in the technical basis; calculating on the safe side; Solvency II; first-order basis; second-order basis; sum at risk.