INCREASED TORT DAMAGES
The latest Australian Life Table (ALT 2020-22) was released by the Australian Government Actuary in late
December 2024. This is of particular interest because it includes the Covid-19 pandemic experience. With lower influenza and
accident rates, mortality rates have fallen for most ages, despite the pandemic. At very young and very advanced ages, the rates
have increased slightly. The graph shows the comparison of rates between this and the previous life table. Overall, the period life
expectancy has increased between the most recent tables by 0.5 years at birth for males and 0.4 years for females.
To get a good estimate of an individuals’ life expectancy, one needs to take mortality trends into account.
Life expectancy has increased by 34 years since 1885! As with money – where one needs to take quantity and timing into account,
similarly with life expectancy one needs to take age, gender and mortality trends into account. This is called “cohort” life
expectancy.
The ABS also produces life tables. Whilst the two tables produce very similar results, the quick release of
ABS tables require estimates for late reported deaths. The Australian Life Tables don’t require an estimate and have a far longer
trend history. For ages 45 to 80 the ALT 2020-22 mortality rates tend to be a little lower than the ABS tables. The period life
expectancy at birth between the two tables is 0.1 for male and 0.0 for females. At age 65 it is 0.1 years for both male and females.
Hence, the preference for the ALT over ABS comes down to the view that trends based on full census data for a very long history is
desirable.
In practical terms, either table will increase damages claims based on life expectancy by a small amount.
The NetActuary web site has a table of life expectancy using ALT 2020-22 with twenty-five year trend mortality improvements that are
applicable for tort claims in the 2025 calendar year. To view ---> Click Here