PERSONAL MEMORANDUM
To KNUST-Actuarial Department
From Bill Adongo
Date: 17th January, 2014.
As you know, life and mortality tables suitable for premiums
making in life insurance is one of the greatest challenge to most actuary in
Africa and others continent. Almost all actuaries
in Africa rely on the USA commissioners
Standard Ordinary table for premium making, which to me is not the best.
Actuaries in Africa aught to understand that the risk’s exposure to death vary
from country to country; the number of deaths vary from country to country; the
population in USA is not the same to any other country in Africa and our
economic security vary.
Because of this challenge, I have invented a method (called Adongo Minimum Uncertainty Method) that is for constructing a perfect standard mortality table that would help most actuaries in Ghana to construct their own mortality table for premium making. The method has improved the chief weakness of USA commissioners Standard Ordinary Table. The method helps to construct a perfect standard mortality table where the actual deaths of each age group are exactly equal to those expected. In USA commissioners Standard Ordinary Table, the exposures to risk and the crude mortality rate in each age group are needed to estimate the expected death whereas, my method can be used to estimate the expected deaths without exposure to risk.
I will like all actuaries research team in Ghana, Africa and others continent to know my method and how to apply this method practically.
