What does the mortality rate help to predict?

The mortality rate is a statistical measure that indicates the frequency of deaths in a given population over a specific period. This metric is crucial for actuaries and insurers as it helps in predicting future deaths within that population. By analyzing mortality rates, insurers can estimate how many people are likely to pass away at different ages, which informs their risk assessments and pricing strategies. Understanding mortality rates allows insurance companies to better anticipate claims and balance their financial obligations accordingly.

While life expectancy and future premiums may also be influenced by mortality rates, the mortality rate's primary role is directly linked to predicting the occurrence of future deaths.