It is the purpose of this paper to study the variations in the Sickness Experience of 1972–75 for individual PHI policies (CMIR 4) for male lives. The data for female lives are too small for this. An attempt is made to get some idea of the magnitude and distribution of the variability of the rates of claim inceptions and of sickness. The Report gives the crude data for age-groups only but the PHI Sub-Committee kindly supplied me with tabulations of the figures for individual ages.
The paper concerns the situation in which an evaluation of outstanding claims is discounted, in anticipation of investment return earned by the funds supporting that liability. Factors bearing upon the choice of an appropriate rate of return to be assumed in this evaluation are considered.