Research Data from Macquarie University Update Understanding of Insurance Economics (Coherent modeling of male and female mortality using Lee-Carter…

Research Data from Macquarie University Update Understanding of Insurance Economics (Coherent modeling of male and female mortality using Lee-Carter in a complex number framework)

By a News Reporter-Staff News Editor at Insurance Weekly News -- Current study results on Economics - Insurance Economics have been published. According to news reporting originating in Sydney, Australia, by VerticalNews journalists, research stated, "Forecasts of female and male mortality that are conducted independently run the risk of projecting implausible sex differentials and fail to exploit correlations that are known to exist between the sexes. We present a new model for the simultaneous modeling of female and male mortality."

The news reporters obtained a quote from the research from Macquarie University, "The model casts mortality as a complex-valued process where the real and imaginary parts correspond to female and male mortalities, respectively. Calculations proceed similarly to the usual Lee-Carter model, via the singular value decomposition, albeit in complex form. Initial applications suggest that the complex Lee-Carter gives fits that are broadly comparable to independent real fits, while offering the advantage of explicit modeling of the relationship between the sexes."

According to the news reporters, the research concluded: "Furthermore, model parameters are informative and easily-interpretable."

For more information on this research see: Coherent modeling of male and female mortality using Lee-Carter in a complex number framework. Insurance Mathematics & Economics, 2016;71():130-137. Insurance Mathematics & Economics can be contacted at: Elsevier Science Bv, PO Box 211, 1000 Ae Amsterdam, Netherlands.

Our news correspondents report that additional information may be obtained by contacting P. de Jong, Macquarie University, Dept. of Appl Finance & Actuarial Studies, Sydney, NSW 2109, Australia. Additional authors for this research include L. Tickle and J.H. Xu.

Keywords for this news article include: Sydney, Australia, Australia and New Zealand, Insurance Economics, Economics, Macquarie University.

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