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CIA meeting Group Hot Topics SOA 2005 Waiver Table

CIA meeting Group Hot Topics SOA 2005 Waiver Table. Denis@garandnet.net. Is the US different then Canada?. Most but not all Canadian group waiver based on LTD definition US Disability covered population lower then Canada as a proportion of population insured

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CIA meeting Group Hot Topics SOA 2005 Waiver Table

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  1. CIA meeting Group Hot TopicsSOA 2005 Waiver Table Denis@garandnet.net

  2. Is the US different then Canada? • Most but not all Canadian group waiver based on LTD definition • US Disability covered population lower then Canada as a proportion of population insured • US can still exclude Mental and Nervous disorder • 9 month elimination period

  3. Is Kreiger out of date? • Based on 1970’s at that time: • Workforce had much higher male participation compared to women (15% F in Krieger versus 40% currently) • Overall work was harder and population health during working life time worst. • Overall mortality has improved substantially since 1970’s • Medical interventions improved. • Etc.

  4. First impressions SOA 2005 • Compared to ~Krieger basic (now sex distinct!) A/E Total select ultimate Death 56% 59% 53% Recovery 102% 98% 174% Reserve 60% 62% 61% • Ratio female to male death rate • Select period 72%, higher at older ages • Ulitmate period 79% • Termination rates lower than Canadian experience

  5. Comparing a few tables • Block of ~50,000 lives • 592 currently open waiver reserves • Reserve basis @ 5% res (mil) exp Death • Kreiger Basic 8.5 45.6 • SOA 2005 5.6 29.9 • Muirhead Table 3.6 17.5

  6. Conclusion • Kreiger no longer relevant for Canada • SOA 2005 still does not reflect Canadian data • Muirhead table closest to Canadian population • Need to adjust valuation and pricing models for current waiver risk!

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