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Mortality Trends in Ireland 13 th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan Shane Whelan ** The authors would like to thank the Central Statistics Office for their help in supplying data required to compile this report.

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Page 1: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Mortality Trends in Ireland13th June 2007

Demographic Sub-Committee:John Armstrong (Chairperson)

Colm GuiryAisling Kennedy

Liam SloyanShane Whelan

** The authors would like to thank the Central Statistics Office for their help in supplying data required to compile this report.

Page 2: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Background

• Continues previous work of the sub-committee• Includes recent 2005 experience• Considers issues overall pattern and possibility

of cohort effect• Considers changes in short-term mortlity

experience in relation to cause of death• Considers role of social class as factor affecting

mortality• Review of tables used and implications for

actuaries

Page 3: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Agenda/Objectives

To compare Irish mortality experience with that of other countries

To identify how mortality is affected by social class

To draw conclusions suitable for application

To identify trends in Irish mortality

To analyse recent changes in mortality experience by cause of death

To understand industry practice

Page 4: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Part 1: Overall patterns in Irish mortality experience

Page 5: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Outline Irish Population Mortality Projections

Projection of Trends (males)

Investigation of Cohort Effect for Irish Males

Overall Conclusion

Data Sources

Recent trends in population mortality experience (males)

Projection Using Targeting Method (males)

Page 6: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Data: Irish Population Statistics

ILT Tables since 1926 to 2002All graduated by King’s Method (JIA (1909))

Census method used for qx for ages x= 0 to 6.Population count and deaths grouped in quinquennial age bands: 5-9, 10-14, 15-19,…., 80-84, and 85-89. Simple ratio to estimate mx (and thereby qx) for central ages 7, 12, 17,…,82 and 87. Osculatory interpolation used to estimate intervening qxs.Projection of qx for x>87 by fitting quadratic curve or Gompertz

“Saorstat Life Table cannot be unreservedly accepted as a reliable index of actual conditions…Messrs Hooper and Geary in particular are to be congratulated on their enterprise to elucidated the obscurities of Irish population statistics.”

Brown, P.G. (1930), Irish Free State Life Table, JIA.

Page 7: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Data: Irish Population StatisticsAge heaping is still a problem at later ages. At ages above 80, the data is described as “conditionally acceptable quality” with “data give probably a roughly correct description of the mortality trend though at a level artificially lowered by age overstatement.”

Kannisto, V. (1994) Development of oldest-old mortality, 1950-1990: Evidence from 28 Developed Countries. Odense Press. Can be overcome using the method of extinct generations and the Kannisto-Thatcher Old Age Database at the Max Planck Institute for Demographic Research…but beyond scope of this presentation.

Prior to 1987, we have deaths by sex, individual ages and calendar years but population only estimated (to nearest 1,000) in age groups <1, 1-4, 5-9,…, 80-84, 85+ outside of census years. This data only goes back to 1950 in electronic from. [With thanks to CSO.]From 1987 to 2005 we have both deaths and population estimates by individual age and sex. [With thanks to CSO.]

Page 8: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Irish Life Tables 1- 14 Males

0.0001

0.001

0.01

0.1

1

0 4 8 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 80 84 88 92 96 100

Age

qx (l

og sc

ale)

ILT 1 ILT 2 ILT 3 ILT 4 ILT 5 ILT 6 ILT 7 ILT 8 ILT 9 ILT 10ILT 11 ILT 12 ILT 13 ILT 14

Page 9: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Percentage Fall (p.a.) in Irish Male Mortality Rate to 2002

1.170.030.410.530.700.9590

1.940.260.780.931.421.6880

2.840.680.921.532.153.0270

3.421.101.252.082.713.3060

2.431.531.652.232.751.8150

0.812.031.801.791.730.4240

-0.352.091.640.29-0.180.1430

2.931.841.000.410.52-0.1720

5.353.653.613.964.633.1410

2.203.473.953.752.652.130

CSO Factor70 Years50 Years30 Years 20 Years10 Years

Page 10: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Irish Male Mortality, 1997-2005[Deaths averaged over 3 years, but 2005 over 1 year]

0.00001

0.0001

0.001

0.01

0.1

1

0 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 60 63 66 69 72 75 78 81 84 87 90 93

Age

qx

(log

sca

le)

1997 1998 1999 2000 2001 2002 2003 2004 2005

Page 11: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Percentage Fall (p.a.) in Irish Male Mortality Rate

over rolling three year periods ending 1990-2004

-2 0 %

-1 5 %

-1 0 %

-5 %

0 %

5 %

1 0 %

1 5 %

1 9 9 0 1 9 9 1 1 9 9 2 1 9 9 3 1 9 9 4 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4

2 0 3 0 4 0 5 0 6 0 7 0 8 0

Page 12: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Percentage Fall (p.a.) in Irish Male Mortality Rate

over rolling three year periods ending 1990-2004 plus 2005

-20%

-15%

-10%

-5%

0%

5%

10%

15%

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

20 30 40 50 60 70 80

Page 13: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Percentage Fall (p.a.) in Irish Male Mortality Rate to 2005

[5 year average about age shown]

Note: Deaths averaged over 3 years in base year, single year for 2005.

0%

2%

4%

6%

8%

10%

12%

14%

16%

5 9 13 17 21 25 29 33 37 41 45 49 53 57 61 65 69 73 77 81 85 89

Age

% R

educ

tion

p.a.

Since 2002 Since 2000 Since 1995 Since 1987

Page 14: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

CSO Method of Mortality Projection (2004)

• Assumes average % annualised fall in mortality rate in 16 year period from 1986 to 2002 to continue in each future year.– Except between 20-29 for both sexes where used annualised

increases over 6 years from 1996 to 2002.

Page 15: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

CSO: Forecast fall in qx p.a. in projections

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

0 4 8 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 80 84 88 92 96 100

Age

% F

all i

n qx

per

ann

um

Males Females

Page 16: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Period & Cohort Life Expectancies, CSO (2004) Projections, Males, age 65

15

20

25

30

35

2006 2016 2026 2036 2046 2056 2066 2076 2086 2096 2106

Year

Life

Exp

ecta

ncy

(yea

rs)

1.50

1.60

1.70

1.80

1.90

2.00

Diff

eren

ce

CohortPeriodDifference

Page 17: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Period & Cohort Life Expectancies, CSO (2004) Projections, Males, age 65

15

20

25

30

35

2006 2016 2026 2036 2046 2056 2066 2076 2086 2096 2106

Year

Life

Exp

ecta

ncy

(yea

rs)

1.50

1.60

1.70

1.80

1.90

2.00

Diff

eren

ce

CohortPeriodDifference

Rules of Thumb based on CSO(2004): (1) Cohort life expectancy is 1.75 to 2 years higher than period life expectancy.(2) Life expectancy (cohort or period) is increasing by about 0.17 of a year with the passing of

each calendar year.

17.816.0

Page 18: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

CSO Method: VariationsProjections of Period Life Expectancy from 65 Males

15

16

17

18

19

20

21

22

23

24

25

2006 2011 2016 2021 2026 2031 2036 2041 2046 2051 2056 2061

CSO Projection P20 P30 L50 L76

Page 19: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Period & Cohort Life Expectancies, CSO (2004) Projections, Males, age 0

75

80

85

90

95

100

2006 2016 2026 2036 2046 2056 2066 2076 2086 2096 2106

Year

Life

Exp

ecta

ncy

(yea

rs)

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Diff

eren

ce

CohortPeriodDifference

Page 20: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

CSO Method: VariationsProjections of Period Life Expectancy from 0 Males

74

76

78

80

82

84

86

88

2006 2011 2016 2021 2026 2031 2036 2041 2046 2051 2056 2061

CSO Projection P20 P30 L50 L76

Page 21: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Updating CSO Projection Method

• Acceleration in pace of mortality decline…all ages and, remarkably, also at the higher ages

• Projection results depend on period in past used…the longer the past period the lower the mortality improvements forecast

• Illustration…basing it on, say, 19 years observed reduction rate at each age to end 2005 (1986 to 2005)

Page 22: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Reduction Factors % p.a. for Male Projections above age 65

0%

1%

2%

3%

4%

5%

65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95

Age

Redu

ctio

n %

p.a

.

From 1986 to 2005From 1986 to 2002

Page 23: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Period & Cohort Life Expectancies, Projections, Males, age 65, updated to 2005

15

20

25

30

35

2006 2016 2026 2036 2046 2056 2066 2076 2086 2096 2106

Year

Life

Exp

ecta

ncy

(yea

rs)

1.00

1.20

1.40

1.60

1.80

2.00

2.20

2.40

2.60

2.80

3.00

Diff

eren

ce

CohortPeriodDifference

Page 24: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Period & Cohort Life Expectancies, Projections, Males, age 65, updated to 2005

15

20

25

30

35

2006 2016 2026 2036 2046 2056 2066 2076 2086 2096 2106

Year

Life

Exp

ecta

ncy

(yea

rs)

1.00

1.20

1.40

1.60

1.80

2.00

2.20

2.40

2.60

2.80

3.00

Diff

eren

ce

CohortPeriodDifference

Rules of Thumb based on CSO (Updated to 2005): Cohort life expectancy (LE) in 2006 increased by 1.2 years (period LE increased by 0.8 years) over

previous forecast. Cohort LE now 2.25 years above period LE.Life expectancy (cohort or period) is increasing by about 0.2 of a year with the passing of each

calendar year.

19.0

16.8

Page 25: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Investigation of Cohort Effectfor Irish Males

Page 26: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Aim

• To estimate timing and size of cohort effect in Ireland, sufficiently accurate to make reasonable projections.

• Based on interpolations between official ILTs, cohort born 1923-1943 seem to exhibit a ‘step down’ in mortality….the so called ‘cohort effect’.

Page 27: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Percentage Fall (p.a.) in Irish Male Mortality Rate over Decade Ending

0.950.460.181.23-0.78-2.400.5690

1.681.16-0.070.270.83-0.96-1.1680

3.021.280.27-0.660.660.28-0.1070

3.302.110.80-0.530.521.110.3260

1.813.671.19-0.311.871.530.8850

0.423.021.91-0.053.633.541.6640

0.14-0.511.221.345.875.171.2430

-0.171.200.20-2.446.016.980.7020

3.146.102.590.405.724.912.5910

2.133.165.934.024.474.87-0.390

2001199119811971196119511941Age

Page 28: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Percentage Fall (p.a.) in Irish Male Mortality Rate over Decade Ending

0.950.460.181.23-0.78-2.400.5690

1.681.16-0.070.270.83-0.96-1.1680

3.021.280.27-0.660.660.28-0.1070

3.302.110.80-0.530.521.110.3260

1.813.671.19-0.311.871.530.8850

0.423.021.91-0.053.633.541.6640

0.14-0.511.221.345.875.171.2430

-0.171.200.20-2.446.016.980.7020

3.146.102.590.405.724.912.5910

2.133.165.934.024.474.87-0.390

2001199119811971196119511941Age

Page 29: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Map of Improvements in Male Mortality (% pa average fall over 5 years centred in calendar

year shown) [Based on ILTs]0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100

1933

1937

1941

1945

1949

1953

1957

1961

1965

1969

1973

1977

1981

1985

1989

1993

1997

Age

Year

-0.05--0.025 -0.025-0 0-0.025 0.025-0.050.05-0.075 0.075-0.1 0.1-0.125

Page 30: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Aim

• Must refine analysis– Graduating mortality experience back as far as

data allows.• Average deaths over 3 calendar years for

numerator (as by official ILTs)• Apply King’s method to get mortality rates for ages

12 to 72 from 1950 in each calendar year• This gives a higher resolution in heat-map …

Page 31: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Map of Improvements in Male Mortality (% pa average fall over 5 years centred in calendar year shown) [fine Data]

0 4 8 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 80 84 88 92

1933

1937

1941

1945

1949

1953

1957

1961

1965

1969

1973

1977

1981

1985

1989

1993

1997

2001

Age

Year

-0.05--0.025 -0.025-0 0-0.025 0.025-0.050.05-0.075 0.075-0.1 0.1-0.125

Page 32: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Map of Improvements in Male Mortality (% pa average fall over 5 years centred in calendar year shown) [fine Data]

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95

1933

1937

1941

1945

1949

1953

1957

1961

1965

1969

1973

1977

1981

1985

1989

1993

1997

2001

Age

Year

-0.01-0 0-0.01 0.01-0.02 0.02-0.03 0.03-0.04 0.04-0.05

Page 33: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Tentative Conclusion:

Cohort Effect is Weak forIrish Males

Page 34: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Methods of Mortality Projection

• Aggregate trend or pattern extrapolation– Ireland, The Netherlands, France, Belgium– Italy also use cohort as well as age-specific mortality rate

projections– Many EU countries (like the UN and World Bank) forecast life

expectancy • Targeting methods

– Germany, Austria, Sweden, UK– US Census Bureau.

• By parametric methods – fitting a mathematical curve and projecting trends in the best fitting parameters over time.– Heligman & Pollard formula, Australia 1998

• By separate projections by underlying cause of death (e.g., 10 Main ICD Classes)– US Social Security Administration projections, Japan

Page 35: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

GAD Targeting Method (with Cohort Effect)

• UK Method (GAD)– National Population Projections: Review of Methodology for

Projecting Mortality (2001) 117pp. [Adrian Gallop]– Impressive study of logarithmic, logit, Lee-Carter, modified Lee-

Carter, stochastic Lee-Carter, etc. and how they performed in past but ability to incorporate the cohort effect found to be key

• “…the clear conclusion was that there were no grounds for believing that an alternative methodology would be likely to outperform the present method.” p. 109.

• Method is to blend current trends mortality rates by age and gender, with allowance for cohort effect, to assumed ultimate steady state in 25 years’ time.

• The steady state is 1.0% p.a. fall in mortality at each age and for each sex from 2029. This is close to the average rate of improvement over 20th

century.• Steady state in 2002 projections was 1% p.a. fall from 2027 but halving

every 25 years thereafter.• Apply Method to Irish Males…based on a graduation of 2004

experience (King’s Method) and following immediate improvement factors…

Page 36: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Current Rate of Improvement in Irish Male Mortality p.a. (2004 graduated experience over 2002, annualised)

0%

2%

4%

6%

8%

10%

12%

12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 60 63 66 69 72 75 78 81 84 87 90 93

Page 37: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Life Expectancy, Irish Male at age 65, using targeting method

[current rate of improvement falls to steady state of 1% p.a. over 25 years]

Rules of Thumb: Cohort life expectancy (LE) in 2006 is now 3.2 years above period LE.Life expectancy (cohort or period) is increasing rapidly in near future by about 0.2 and 0.3 (respectively) with the passing of each calendar year.

20.0

16.815

20

25

30

35

2006 2016 2026 2036 2046 2056 2066 2076 2086 2096 2106

Year

Life

Exp

ecta

ncy

(yea

rs)

0

1

2

3

4

5

Diff

eren

ce

CohortPeriodDifference

Page 38: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Irish Pensioners

• Suppose Irish Male Pensioners have mortality rates 90% of Irish Male Population• Assume same rate of reduction in mortality, i.e. mortality differentials remain constant with time.• Then previous analyses give mortality projections for male pensioners reaching at 65 in 2006 as:

21.817.6GAD (2%)20.917.6GAD (1%)

19.9 (years)17.6 (years)CSO (Updated)Cohort LE at 65Period LE at 65 Method

Page 39: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

In Summary

• Recent dramatic reductions in mortality rates AT ALL AGES – pattern of improvement shows acceleration

• Cohort effect is present but not very pronounced in Irish Males• Cohort life expectancies for male aged 65 in 2006 is

– 19.0 years (CSO Method, updated), increasing at 0.2 years per calendar year

– 20.0 years (GAD, 1%), increasing at 0.2 years per calendar year– 20.7 years (GAD, 2%), increasing at 0.27 per calendar year

• If male pensioners have mortality rates 90% of population males through time then cohort life expectancies for 65 year old male pensioner in 2006 are about one year higher under each method

• Need better assessment of mortality at older ages in Ireland (Kannisto-Thatcher database must be used)

Page 40: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Part 2: Mortality experience by cause of death

Page 41: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Summary of previous findingsConsiderable improvements in mortality rates for principal causes of death since 1980 on age-standardised basis for both males & females

Nearly 80% of deaths were caused by three main causes:

Circulatory diseases – Ischaemic heart disease, Cerebrovascular

Cancers

Respiratory diseases – Pneumonia, Influenza, Chronic lower respiratory diseases

Rates of improvements most pronounced for circulatory diseases

Rates of improvement ignoring cohort effect better for younger ages

Page 42: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Comments on the cause of death analysis

Useful for understanding underlying causes of mortality

However, poor method for forecasting

Empirically has shown has under-estimated improvements

Measurement error

Causes of death are not independent

Given size of country, volume of data becomes quite small once segment by age and gender and therefore credibility issues arise

Page 43: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

How has recent experience changed?Considered experience in 2005 compared to other years as underlying mortality improvement seemed more significant in 2005

Possible explanations:

2004 experience particularly high

Special factors in 2005

Method:

Banded years and considered change in mortality patterns for 3-year periods from 1980 for principal causes of deaths

Results suggests that mortality has continued to improve in 2003-2005 period

Rate of improvement faster than before

Page 44: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Rates of Improvement

Period Females Males Change from 1982-1984 to 1985-1987 0.9% 0.2%Change from 1985-1987 to 1988-1990 1.9% 2.5%Change from 1988-1990 to 1991-1993 1.7% 1.5%Change from 1991-1993 to 1994-1996 1.0% 1.1%Change from 1994-1996 to 1997-1999 1.2% 1.6%Change from 1997-1999 to 2000-2002 3.0% 3.6%Change from 2000-2002 to 2003-2005 3.4% 4.4%

Page 45: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Female Mortality for Circulatory conditions

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Year

Rat

es p

er 1

00,0

00 P

opul

atio

n

40-44 years 45-49 years50-54 years 55-59 years60-64 years 54-69 years70-74 years 75-79 years80-84 years 85 years and over

Page 46: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Male Mortality for Neoplasms

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Year

Rat

es p

er 1

00,0

00 P

opul

atio

n

40-44 years45-49 years50-54 years55-59 years60-64 years54-69 years70-74 years75-79 years80-84 years85 years and over

Page 47: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Part 3: International Comparisons

Page 48: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

European age-standardised death rates – all causes

450

500

550

600

650

700

750

800

850

900

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Stan

dard

ised

dea

th ra

te p

er 1

00,0

00 p

opul

atio

n

AustriaFinlandGermanyGreeceIrelandLuxembourgNetherlandsPortugalSpainUnited KingdomEU-15

Reduction in mortality % p.a.:2000-2004: EU-15: 1.5%; Ireland: 4.8%

2002-2004: EU-15: 1.6%; Ireland: 5.0%

Page 49: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

European age-standardised death rates – circulatory diseases

0

50

100

150

200

250

300

350

400

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Stan

dard

ised

dea

th ra

te p

er 1

00,0

00 p

opul

atio

n

Austria

Finland

Germany

Greece

Ireland

Luxembourg

Netherlands

Portugal

Spain

United Kingdom

EU-15

Page 50: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

European age-standardised death rates – cancer

0

50

100

150

200

250

300

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Stan

dris

ed d

eath

rate

per

100

,000

pop

ulat

ion

AustriaFinlandGermanyGreeceIrelandLuxembourgNetherlandsPortugalSpainUnited KingdomEU-15

Page 51: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

European age-standardised death rates – cancer - men

0

50

100

150

200

250

300

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Stan

dard

ised

dea

th ra

te p

er 1

00,0

00 p

opul

atio

n

AustriaFinlandGermanyGreeceIrelandLuxembourgNetherlandsPortugalSpainUnited KingdomEU-15

Page 52: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

European age-standardised death rates – cancer - women

0

50

100

150

200

250

300

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Stan

dard

ised

dea

th ra

te p

er 1

00,0

00 p

opul

atio

n

AustriaFinlandGermanyGreeceIrelandLuxembourgNetherlandsPortugalSpainUnited KingdomEU-15

Page 53: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

European age-standardised death rates – external causes

0

50

100

150

200

250

300

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Stan

dard

ised

dea

th ra

te p

er 1

00,0

00 p

opul

atio

n

AustriaBelgiumFranceIrelandItalyLuxembourgPortugalSpainSwedenEU-15

Page 54: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Part 4: Mortality and Social Class

Page 55: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Social Classification

• I Professional• II Managerial & Technical• IIIN Skilled Non-manual• IIIM Skilled Manual• IV Partly Skilled• V Unskilled

Page 56: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Examples of Correlations between Social Class and Factors Influencing Mortality

• Highest proportion of smokers in IIIM (32%) Proportion in I & II is 19%

(Source: Office of Tobacco Control)

• Prevalence of Obesity rises from 10% in I&II to 17% in IV &V(Source: National Taskforce on Obesity)

• Prevalence of serious disability rises from 2.5% for class I to 7.5% for class VPrevalence of moderate disability rises from 8% for class I to 23% for class V(Source: Health Survey for England, 2001 – UK Department of Health)

Page 57: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

UK ONS Longitudinal Study

• Office of National Statistics in the UK• Study involving c. 1% of the population in

England and Wales – chosen by DOB• Study commenced in 1972 and is continuing• Latest available data is for 2001• If unclassified – spouse’s / parent’s classification

is used• Social class at date of entry to the study is

maintained throughout

Page 58: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Male Life Expectancy at Birth by Social Class (England & Wales)

Source - Office of National Statistics Longitudinal Study

65

70

75

80

72-76 77-81 82-86 87-91 92-96 97-01

IIIIIINIIIMIVV

Page 59: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Male Life Expectancy at Age 65 by Social Class (England and Wales)

Source - Office of National Statistics Longitudinal Study

10

12

14

16

18

20

72-76 77-81 82-86 87-91 92-96 97-01

IIIIIINIIIMIVV

Page 60: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Difference in Male LE at 65 between Social Classes (Eng & Wales)

0

2

4

6

72-76 77-81 82-86 87-91 92-96 97-01

I and VII and IIIM

Page 61: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Changes in Irish Social Demographic (1991 to 2002)

0%10%20%30%40%50%60%70%80%90%

100%

1991 2002

IIIIIINIIIMIVVUnclassified

Page 62: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Effect of change in Social Demographic on Irish LE

• Assume Social Demographic distribution for 65 year-olds is the same as for 45 + (assumption validated for 2002 data)

• Apply LE social class differentials from ONS study for England & Wales

• Impact on LE of change in demographic between 1991 and 2002 estimated at 0.2 yrs for men aged 65 and 0.1 yrs for women aged 65

Page 63: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Part 5: Industry mortality projections

Page 64: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Methods and rates of improvement used

• Examined projections used by life offices and pension schemes

• Life office assumptions are based on returns to the Financial Regulator at 31 December 2005

• Pension scheme assumptions are based on ASP Pen-2 and discussions with scheme actuaries

• Also included CSO data from ‘Population and labour force projections’ of 2004

Page 65: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Methods and rates of improvement used

• Produced comparison of 6 sets of projections:– CSO – PMA/PFA 92c2006 with future mortality rates

improving at fixed 2% p.a.– PMA/PFA 92c2006 with future mortality rates in

line with medium cohort subject to a minimum improvement of 1% p.a.

– ASP Pen-2 (90% PMA/PFA92c2004 with fixed annuity increase factors 0.225%/0.175% p.a.)

– PMA/PFA 92c2010– PMA/PFA 92c2025

Page 66: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Period vs. Cohort approach

• Pension scheme mortality projections currently tend to use period approach, e.g. – q65c2007– q66c2007– q67c2007 etc.

• Life office annuitant mortality projections tend to use cohort approach, e.g.– q65c2007– q66c2008– q67c2009 etc.

Page 67: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Period method - projected Male e(65)

15.0

20.0

25.0

30.0

35.0

2006 2011 2016 2021 2026 2031 2036

CSO

PMA92c06(2% p.a.)PMA92c06(MC/1%)ASP Pen-2

PMA92c2010

PMA92c2025

Page 68: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Period method - projected Female e(65)

15.0

20.0

25.0

30.0

35.0

2006 2011 2016 2021 2026 2031 2036

CSO

PFA92c06 (2%p.a.)PFA92c06(MC/1%)ASP Pen-2

PFA92c2010

PFA92c2025

Page 69: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Effect of introducing cohort method -projected Male e(65)

15.0

20.0

25.0

30.0

35.0

2006 2011 2016 2021 2026 2031 2036

CSO (Cohort)

PMA92c06(2% p.a.)

PMA92c06(MC/1%)

CSO (Period)

PMA92c06(2% p.a.)(Period)PMA92c06(MC/1%)(Period)

Page 70: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Effect of introducing cohort method -projected Female e(65)

15.0

20.0

25.0

30.0

35.0

2006 2011 2016 2021 2026 2031 2036

PFA92c06(2% p.a.)

PFA92c06(MC/1%)

PFA92c06(2% p.a.)(Period)

PFA92c06(MC/1%)(Period)

Page 71: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Part 6: Recommendations and Next Steps

Page 72: Mortality Trends in Ireland · 2018-10-13 · Mortality Trends in Ireland 13th June 2007 Demographic Sub-Committee: John Armstrong (Chairperson) Colm Guiry Aisling Kennedy Liam Sloyan

Conclusions• Recent dramatic reductions in mortality rates AT ALL AGES

– pattern of improvement shows acceleration

• Cohort effect is present but not very pronounced in Irish Males

• Cohort life expectancies for male aged 65 in 2006 have been estimated as: – 19.0 years (CSO Method, updated), increasing at 0.2 years per calendar year– 20.0 years (GAD, 1%), increasing at 0.2 years per calendar year– 20.7 years (GAD, 2%), increasing at 0.27 years per calendar year

• Irish mortality improvements have been dramatic by internationalstandards and Irish mortality is now approaching EU-15 average

• Recent changes in the mix of the population by social class are considered to have had a limited impact on life expectancy

• Changing mortality patterns will have profound effects for policy-makers & actuaries including projection method