Aggregate Mortality Table

Aggregate mortality table is data on the death rate of everyone who has purchased life insurance, without categorization based on age or time of purchase. This calculation includes combined statistics of mortality tables.

In order to price insurance products and ensure the solvency of insurance companies through adequate reserves, actuaries must develop projections of future insured events that will lead to a payout (such as death, sickness, disability, etc.). To do this, actuaries develop mathematical models of the frequency and timing of the events.

The tables are made by studying the incidence and severity of events in the recent past, developing expectations about how the drivers of these past events will change over time (for example, whether the increase in life expectancy that has been experienced over generations will continue) and developing an expectation for what the timing and amount of such events will be into the future.

From these expectations, tables of percentages indicating the number of such events that will occur in a population are created, usually based on the age or other relevant characteristics of the population. They may be referred to as mortality tables (if they provide rates of mortality, or death) or morbidity tables (if they provide rates of disability and recovery).

Mortality tables are mathematically complex grids of numbers that show the probability of death for members of a given population within a defined period of time. Mortality tables are usually constructed separately for men and for women. Other characteristics can also be included to distinguish different risks, such as smoking status, occupation and socio-economic class. There are even actuarial tables that determine longevity in relation to weight. The life insurance industry relies heavily on mortality tables, as does the U.S. Social Security Administration.

Most people are surprised to learn that mortality rates aren't static at all. They are constantly shifting according to factors including age group, sex, and many more determinants. 

Foe example, looking at 2012 to 2015, a study published by The Society of Actuaries found  "annual mortality improvement rates between 2012 and 2015 for males. In aggregate, mortality for males increased from 2014 to 2015. The young adult group from ages 20-44 experienced the greatest rise in mortality; a primary underlying cause of this increase is a significant rise in deaths from self-harm and accidents. Aggregate mortality improvement from 2014 to 2015 was negative for the first time since 1999 for retirement-age individuals (65 and Over) and for the first time since 1993 for the population as a whole."