Executive summary

Abstract

1. Expanding factors into additional categories to reflect the assumed current mortality rate risk exposure period over the remaining lifetime of an inforce block of business. 2. Adding two catastrophe components for a) terrorism (expressed as a 5% annual probability of an extra 0.05 deaths per 1,000), and b) the risk of a sustained mortality increase from an unknown event (expressed as a 2.5% annual probability of a 5% sustained mortality increase). These two new components are in addition to the pandemic component previously included. 3. Combining the current middle two size categories into one category.