The Financial Regulatory Authority (FRA) has tapped UK-based consultancy and actuarial services firm Barnett-Waddingham to develop actuarial life tables based on Egyptian data for local insurance players according to the chairman of FRA, Mohamed Omran, said.
This move is part of a plan to develop non-banking financial markets between 2018 and 2022, Omran noted.
Creating the first local actuarial life table will support life insurance companies which are currently relying on English tables that date back to the mid-1900s in pricing their products, he added.
The current tables don’t fully comply with the standards of the local life insurance market, he pointed out.
What is the actuarial life table
Life tables (also known as mortality tables or actuarial tables) are based on statistics to calculate the probable life expectancy for people at different ages and the probability of them making it to their next birthday.
The tables “assist insurance companies by showing event probabilities, such as death, sickness, and disability,” which helps insurance companies to better price their products and account for probable future life events to insure.
