Club Vita Introduces Mortality Tables Considering Geography

Club Vita, which specializes in longevity analytics, has made its longevity model available in the U.S.

Subscribed users can receive full mortality tables for every combination of pension amount, ZIP code and collar type. Each table is a set of probabilities for someone of a certain age to survive for one year. Each table is called a “VitaCurve”—hence the full model being called “VitaCurves.”

Club Vita says the nine-digit ZIP code, or ”ZIP+4 code,” offers significantly more detail on geographical differences in life expectancy than other methods.

Earlier this year, Mercer announced it’s the first consulting firm to offer Club Vita’s longevity risk reporting to its clients in the United States. As part of their five-year agreement, Mercer’s pension plan clients in the United States will have access to Club Vita’s proprietary longevity assumptions, analytics and reporting, which will help them to help better assess and manage their plans’ longevity risk. In addition, the aggregate enhanced data set will also be used by Mercer’s consulting teams to provide more powerful insights to help with client decision making. 

Club Vita has produced a white paper, “Zooming in on ZIP Codes,” which explains how integrating ZIP codes and identifying other socioeconomic factors can help pension plan sponsors have a better handle on the life expectancy estimates for their participants.

The longevity model is a technical actuarial model for calculating current life expectancy (generally for participants of defined benefit (DB) plans). The calculations are based on three different factors: ZIP code (preferably at the ZIP+4 level), pension amount and blue/white collar. Club Vita plans to include more factors in subsequent updates of the model. This year’s model is based on 2014 to 2016 data.

The full longevity model is available to subscribers of Club Vita’s services. Subscribers can be pension plans, insurance companies, asset managers or other industry stakeholders. Subscribers can work directly with Club Vita to access the model, or through an adviser who has signed up to license the model.