Define: Commissioners Standard Ordinary Mortality Table

The Commissioners Standard Ordinary Mortality Table is a widely used actuarial tool that provides statistical data on the expected mortality rates of individuals based on their age and gender. It is commonly used in the insurance industry to determine premium rates and policy values.

Insurance companies use the Commissioners Standard Ordinary Mortality Table to assess the risk associated with insuring individuals. By referencing the table, insurers can estimate the likelihood of policyholders passing away during the policy term and adjust premium rates accordingly.

While the use of the Commissioners Standard Ordinary Mortality Table is not mandatory, it is widely accepted and commonly used by insurance companies. However, insurers may also develop their own mortality tables or use alternative industry-standard tables.

The table is periodically updated by the Society of Actuaries to reflect changes in mortality rates and life expectancy. The frequency of updates may vary, but it is generally done every few years to ensure the accuracy of the data.

The Commissioners Standard Ordinary Mortality Table is primarily used by insurance companies and actuaries. It may not be readily accessible to the general public, but some portions of the table may be available through research publications or actuarial resources.

While age and gender are the primary factors considered in the table, it may also take into account other relevant factors such as smoking status, occupation, and health conditions. These additional factors help insurers assess the overall risk profile of an individual.

Like any statistical tool, the Commissioners Standard Ordinary Mortality Table has certain limitations. It provides general estimates based on aggregated data and may not accurately reflect the mortality risk of specific individuals. Factors such as lifestyle choices, genetics, and socioeconomic status may not be fully captured by the table.

The Commissioners Standard Ordinary Mortality Table is primarily used in the United States. Other countries may have their own mortality tables specific to their populations and healthcare systems. However, the principles and methodologies used in the table can serve as a basis for developing similar tables in other jurisdictions.

Actuaries and insurance professionals can stay informed about updates to the table by actively participating in professional organisations such as the Society of Actuaries. These organisations often provide resources, publications, and educational opportunities to keep members up to date with the latest industry developments.