Experience table

An experience table is built from the mortality actually observed on an insurer's own book rather than on the general population, because 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, an antiselection mechanism that durably lowers their mortality relative to the national average, while a group protection book reflects the age and occupational structure of a particular industry. French law permits their use, but on strict terms: the table must be certified by an actuary independent of the undertaking, rest on a sufficient volume of observation, and 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, not random, gap between the insured population and the reference population, a gap a national table cannot by construction correct.

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 whose annuitants outlive that benchmark must reserve on the regulatory table or have its own certified, the second route requiring several tens of thousands of person-years of observation.

table certifiée, table d'entreprise