Revista Contabilidade & Finanças (Nov 2024)
Personal insurance and open supplementary pension in Brazil: A study on mortality differentials by education level
Abstract
ABSTRACT This study aims to verify whether the inequalities by education level found in the population as a whole are also confirmed among those who subscribed to personal insurance and/or open private pension plans in Brazil between 2012 and 2017. This study is a trailblazer in estimating mortality differentials by education level in populations with personal insurance and open private pensions in Brazil. The research contributes to the understanding of socioeconomic factors related to living conditions and, consequently, mortality. The results show that, even in a population that records lower mortality rates and higher life expectancies when compared to the Brazilian population as a whole, education level plays a major role as a protective factor. Population and death data were provided by 23 insurance groups. Through an agreement with the Ministry of Labor and Social Security, the Applied Mathematics Laboratory of the Federal University of Rio de Janeiro (LabMA/UFRJ) provided the list of insured people to this ministry, data was cross-referenced with government information and returned to the LabMA/UFRJ with identification of education level, when available, as well as indication of deceased, completing company records. Mortality tables were then drawn up for the insured population by education level. To obtain smoothed tables, Heligman and Pollard’s law was applied using a Bayesian approach, via Markov Chain Monte Carlo (MCMC) simulation. In the period from 2012 to 2017, among Brazilians who took advantage of personal insurance and open supplementary pensions, men with a high education level had, at the age of 60, a life expectancy of 5.6 and 6.6 years greater than those with a lower education level, in mortality and survival coverage, respectively. In the case of women, the comparison between the most educated and the least educated shows a difference of 2.7 years in mortality coverage and 5.4 years in survival coverage.
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