Experience table
A mortality table built on the insurer's own book, certified by an independent actuary and substituted for the regulatory table.
Since January 1, 2007, a French insurer reserves its life annuities on the regulatory TGH 05 and TGF 05 tables, or on its own certified experience table. An experience table is built from the mortality actually observed on the insurer's own book rather than on the general population. Insured lives do not die at everyone else's pace. An annuity book is made up of people who bought an annuity because they judged themselves in good health. That antiselection durably lowers their mortality relative to the national average. A group protection book, for its part, reflects the age and occupational structure of a particular industry. French law permits their use, on strict terms. The table must be certified by an actuary independent of the undertaking and rest on a sufficient volume of observation. It may not be more favorable than the regulatory table without statistical justification the certifier stands behind. Certification is renewed periodically, since a table ages along with the book that produced it. The problem solved is the systematic gap between the insured population and the reference population, a gap with nothing random about it that a national table cannot correct by construction.
The generational tables TGH 05 and TGF 05, approved by the order of August 1, 2006 and applicable to life annuities from January 1, 2007, replaced the TPRV 93 table that had become too optimistic. An insurer reserves on those tables or has its own certified by an independent actuary. The second route requires several tens of thousands of person-years of observation.
- Order of August 1, 2006 approving mortality tables for life annuities (Official Journal of August 26, 2006), articles A. 335-1 and A. 132-1 of the French Insurance Code
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