| Third, threats can only be documented based on children's reports, which may lead to misestimation. |
| The actuary is reminded that although the MfAD is only applied to the best estimate assumption, it is intended to cover the uncertainty associated with both misestimation risk and mortality improvement risk. |
| The valuation assumptions use best estimates of future experience together with a margin for misestimation and experience deterioration. |
| Margins higher than average are appropriate when the presence of one or more of the significant considerations means misestimation or deterioration of the best estimate could be large. |
| This represents a misestimation of the underlying mortality assumption. |
| This uncertainty results from the risk of misestimation of and deterioration from the best estimate assumption. |
