SPIA Mortality table

[Oméga]

Someone has a table to suggest for pricing a life contingent SPIA?

[JMO Fan]

SPIAs are very competitive, and often more sensitive to company expenses and investment strategy than expected mortality. Data used in pricing is usually proprietary. Your company's experience is probably best, if you have any.

[Numbers Nerd]

Assuming you're looking at US experience.

The most recent SOA table is still quite out of date - the Annuity 2000 basic table. It was created in 1996 by applying 17 years of projection factors to the 1983 IAM annuity table.

Still, it is better than nothing. Another key assumption is the projection table. There is some evidence that scale AA may not be strong enough, for example. Projection Scale G is another option, with stronger rates of improvement.

All of these tables are available in the Table Manager from the SOA.

[Steve Cooperstein]

Originally Posted by Oméga

Someone has a table to suggest for pricing a life contingent SPIA?

I developed a pricing table and projection scale in 1995 based on several then current sources. Such sources have been updated and thus could be used to update the table and scales if that is what is desired.

Steve