Tuesday, March 15, 2005

Actuaries do not predict age at death

Despite what you may have seen on Las Vegas last night (and on any other show that has ever depicted an actuary), actuaries do NOT have, use or create models that predict the age at which an individual will die. What (life insurance) actuaries do basically boils down to using the law of large numbers to determine how many people in a large group are going to die this year.


Anonymous said...

same thing

ALD said...

Not at all.

On TV, the actuary always says something like, "Based on all the variables on my model you are going to die at age 65.87."