Lee-Carter Mortality Model

How to Implement and Validate Stochastic Mortality Models for SOA Exam C and CAS Exam 5

When preparing for SOA Exam C and CAS Exam 5, understanding how to implement and validate stochastic mortality models is crucial. These models help actuaries quantify and manage the uncertainty in mortality rates, which directly impacts life insurance pricing, reserving, and risk management. This article aims to guide you through practical steps and best practices to implement these models effectively and validate them with confidence, drawing from exam-relevant concepts and real-world examples.