Life Expectancy Differentiation by Provider
Another way of approaching this analysis is by comparing how each life expectancy provider’s results differ from a blended average of all five life expectancies. These are percentage differences, which account for the fact that higher age groups would have shorter life expectancies, where slight differences have more volatile effects on their application. Immediately, we see how much lower EMSI’s projections are at the lower age groups, with insureds aged between 70-74 underwritten 30% shorter than the average. However, this discrepancy declines as age increases. Additionally, it must be noted that the variance from Fasano life expectancies above the blended average at ages above 80 is exaggerated, mainly due to the convergence of the other life expectancy providers at that age. Whereas last year AVS life expectancies were closer to the blended average, this year both AVS and 21st exhibit equal variance around the mean, averaging at a 4% difference.