| The actuary must know how much the interest rate risk exposure is increased by such potential 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. |
| This represents a misestimation of the underlying mortality assumption. |
| A flawed acquisition strategy and a defective management approach exacerbated the cost misestimation. |
| The potential for misestimation is greater when the past experience has been more volatile and hence would justify a greater margin. |
