Cutting Edge Techniques - MIB Solutions, Inc.

Advanced data and statistical techniques are often used in the course of primary research conducted by MIB Solutions' Actuarial and Statistical Research Group. Innovative research helps the insurance industry gain the benefits of advances in the areas of mortality and morbidity research to enhance business performance.

Presented at the 14th Annual International AFIR Colloquium, Boston Actuaries and Financial Risk Section of the International Actuarial Association.

This paper demonstrates the utility of the Poisson distribution in advanced statistical analysis of mortality in order to allow the researcher to obtain more information from their data. The use of the Poisson distribution allows one to compare low numbers of deaths in a cell or subpopulation, thereby deriving more meaningful conclusions from the information that can be gained by using the standard Normal distribution. These techniques not only demonstrate that gender, medical basis, and rating are significant factors in terms of their effect on mortality, but also estimate the degree to which these factors affect mortality.