TGH05 and TGF05 mortality tables
French regulatory generational mortality tables, by sex, that set the minimum level of prudence for pricing and reserving life annuities since 2007.
A life annuity is paid for as long as the annuitant lives; if the table used underestimates longevity, the insurer under-reserves for decades without noticing. The French regulator therefore imposes generational tables, in which mortality depends on the year of birth and falls with it, and the insurer cannot price on a table less prudent than that. Built from population data and data on insured annuitants, they are split by sex because women live longer. Since sex-based pricing was banned, the insurer must apply a single rate, often based on the female table, the more prudent one, which makes annuities dearer for men.
The French order of August 1, 2006 approved the TGH05 and TGF05 tables for contracts taken out from January 1, 2007, replacing the TPRV93 table; the Test-Achats ruling of the Court of Justice of the European Union of March 1, 2011 required identical rates for both sexes from December 21, 2012.
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