3. You have been appointed as an advising actuary to Delta Life, a small. regional life insurance company based in Scotland. Delta specialises in term assurance policies, which it sells through its relationships with local employers, who mostly operate call centres. The majority of workers at these call centres buy term assurance from Delta. This includes not only the telephone operators. but also the management and senior executives. Delta is concerned about the concentration risk inherent in its business model. It is therefore considering expanding its sales to the general public in Scotland. Delta is also concerned about the level of mortality risI-i: inherent in its term assurance contracts. In order to mitigate this risk, Delta is considering selling annuity business. It would aim to sell annuities to people retiring from the businesses with which it already has relationships. If it goes ahead with this proposal. Delta plans to use mortality experience from its term assurance policies to arrive at the assumptions for annuitants' mortality. d] i} Discuss the extent to which this solution might mitigate Delta's modality risk; ii) State, with reasons. whether it would be sensible to use the same mortality assumptions for both classes of business; iii} State four other sources of mortality data that could be used. a) State. with justication, TWO appropriate altematiye ways in which Delta might be able to mitigate the mortality risk arising from its term assurance business