A Study of Incidence Experience for Taiwan Life Insurance

Mortality improvement has become a major issue in ratemaking for insurance companies, and ratemaking is especially difficult in Taiwan. There are two reasons for this difficulty: population size and rapid improvement in mortality. Because the history of life insurance in Taiwan is relatively short, all life insurance products are typically offered based on the same experience life table, which is constructed based on the population purchasing all types of life insurance products in Taiwan. In this study, we used experience data from Taiwan life insurance companies to explore whether there are risk factors related to mortality rates. The experience data will also be used to evaluate whether the customers of life insurance companies possess mortality patterns similar to that of the overall population in Taiwan.