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Life Mortality Risk

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Calculate the Stressed Mortality Rate instantly.

%
%

Current Mortality Rate

1.2%

×

Mortality Stress Multiplier

115.0%

=

Stressed Mortality Rate

1.4%

Life Mortality Rate Shock Impact

Shock increase
Base value
ModuleShockPre-shockPost-shockCharge
Mortality Rate+15%1.2%1.4%0.2%
1Step 1

Stressed Mortality Rate

Stressed Mortality Rate=Current Mortality Rate×(1+Mortality Shock Rate)\mathrm{Stressed\ Mortality\ Rate}=\mathrm{Current\ Mortality\ Rate}\times(1+\mathrm{Mortality\ Shock\ Rate})

Understand the Life Mortality Risk

Overview

Article 137 defines the Life Mortality Risk stress for obligations where higher mortality worsens basic own funds.[1]

Input Terms

  • Current Mortality Rate: Representative pre-stress mortality rate for obligations exposed to mortality risk.[1]
  • Mortality Shock Rate: The proportional mortality-rate increase applied to the current mortality rate. The standard-formula rate is 15% by default.[1]

Technical Rationale

Article 137 covers obligations where higher death rates worsen basic own funds, typically through earlier benefit payments or lower future margins.[1] The permanent age-level calibration reflects a structural deterioration in mortality experience rather than a one-year catastrophe event.

The mortality assumption remains separate from the portfolio-specific valuation loss because Article 137 identifies the adverse biometric direction before technical provisions and own funds are remeasured. Mortality-sensitive obligations remain separated from longevity-sensitive obligations because the same biometric movement can have opposite economic effects.

Important Notes

  • This page specifies the stress, not the final standalone Life Mortality Risk SCR.
  • Only policies where higher mortality increases technical provisions belong in this stress; this page does not validate that portfolio scope. Longevity-sensitive obligations are handled by Life Longevity Risk.

Sources

  1. Delegated Regulation (EU) 2015/35 - Art. 137 (Life mortality risk sub-module) - EIOPA

Default values are illustrative sample inputs for navigation, training, and QA. Replace them with controlled data before using the result in capital analysis, governance, or reporting decisions.