New predictive model analysis showed that expected mortality levels by plan are not as large as the traditional analysis would suggest, indicating that other correlated variables explain the difference, according to Towers Watson’s newest study, titled “The Older Age Mortality Study 3” (TOAMS 3), the company’s third study of U.S. life insurance industry mortality.

“It’s no secret that the low interest rate environment has placed downward pressure on life insurers’ profitability. Insurers have had to reprice many products with profit streams vulnerable to low interest rates, heightening the need for greater pricing accuracy,” said Elinor Friedman, director, life practice, Towers Watson. “Our study gives insurers the tools to address trends in life expectancy and fine-tune their pricing assumptions.”

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