1 / 9

CIA Annual Meeting Assemblée annuelle de l’ICA

CIA Annual Meeting Assemblée annuelle de l’ICA. June 29 & 30, 2006 Ÿ Les 29 et 30 juin 2006 Ottawa, Ontario. GRP-4 Group Disability Reserving. Gary Walters – Current state of affairs Peter Douglas – Stochastic LTD reserving Barry Senensky – Claim-by-claim terminations

rasha
Download Presentation

CIA Annual Meeting Assemblée annuelle de l’ICA

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. CIA Annual MeetingAssemblée annuelle de l’ICA June 29 & 30, 2006 Ÿ Les 29 et 30 juin 2006 Ottawa, Ontario GRP-4 Group Disability Reserving

  2. Gary Walters – Current state of affairs Peter Douglas – Stochastic LTD reserving Barry Senensky – Claim-by-claim terminations Please ask questions at end of any presentation GRP – 4Group Disability Reserving

  3. Based on a survey done fall 2005 14 responding companies Covers $12B of LTD reserves and $1.6B Life waiver reserves No companies use stochastic methods for morbidity Group Disability ReservingCurrent State of Affairs

  4. Adjudication of Life Waiver done with LTD yet reserve termination and mortality assumptions match for only 2 companies 12 Companies use CGDT/GLTD phased in after 2 to 10 years 20 year old US table! Only one company varies termination by diagnosis, only 1 by incidence rate, 1 by COLA and 3 by province Group Disability ReservingCurrent State of Affairs

  5. Two companies do not allow for unknown CPP/QPP decisions, 7 of rest just reduce gross reserve by a % Termination rates based on block or industry experience usually used for refund accounted groups Morbidity PADs usually constant % of expected terminations, 5 companies do have some variation (usually by duration only) Group Disability ReservingCurrent State of Affairs

  6. LTD reserving is just not Sensitive to the risks for each claim or Sensitive to changes in the mix of business Reflective of the level of fluctuation within a block Group Disability ReservingCurrent State of Affairs

  7. Peter Douglas Stochastic Morbidity Models for LTD GRP – 4Group Disability Reserving

  8. Barry Senensky An individual reserve for Dave! GRP – 4Group Disability Reserving

  9. Questions? GRP – 4Group Disability Reserving

More Related