How long has the investigation been running?

A sub-committee of the CMI was set up in 1970 to investigate sickness rates under permanent health insurance policies. The first data collected and analysed was for the years 1972 and 1973 with the results being published in CMI Report 2.

Since then, the CMI has collected income protection data for each year for both group and individual business. However, data for years prior to 1975 was found to be unreliable (see CMI Report 7).

How do you collect/analyse data?

We collect census data, ie, in force data at 1st January each year and claims for which at least one payment has been made during the investigation year, from insurance companies, termed contributing offices. The data is in a per policy format. The full format is specified in the coding guide. More information about data submissions and for access to the latest coding guide is available on the CMI data page. The analysis methodology is described in detail in CMI Report 12 and CMI Report 15.

Who should I send data to or ask about the income protection investigation?

For all investigations the CMI use group email addresses in order to manage communications. Any general enquiries about the CMI should be directed to info@cmilimited.co.uk. For correspondence about the income protection investigation, or to submit data, use ip@cmilimited.co.uk. Should you want speak to someone directly, please call the CMI on 020 7776 3820.

How are duplicate policies in the data allowed for?

Individuals may have more than one IP policy leading to multiple policy records that will all have the same claim experience. Inclusion of these duplicates increases the variance of the number of claims (see CMI Report 7). Duplicate claim records are identified as far as possible by matching records by the following data fields:

  • Record year
  • Age definition
  • Sex
  • Deferred period
  • Birth month and year
  • Date of sickness (day, month and year)

These identified duplicates are removed in analyses of claim termination experience. It is not possible to identify duplicates in the in force data due to the lack of fields capable of differentiating between different policies. Therefore, in analyses of claims inceptions, duplicates are not removed in order to maintain consistency between the claims and in force datasets. The variance is adjusted as described in CMI Report 7.

What are the differences between aggregate, standard and standard* experiences?

The total collected data is referred to as the aggregate data. The data should not include medically substandard lives. Historically such lives have been requested to be excluded from data submissions. However, more recent versions of the coding guide, from version 3.0 onwards, request that these are included and identified as medically substandard.

The main analysis from the 1975-78 quadrennium was carried out on a subset of the aggregate data known as the standard data. This consists of UK policies with no special benefit types (e.g. lump sums), no identifiable underwriting exclusions and no occupational rating. The occupational rating field within the data has been used from the start of the investigation and has two values, rated or not rated. Records where the occupational rating is unknown are excluded from the data (see CMI Report 7).

To make use of the occupational class information, collected with effect from 1991, a new subset of the Aggregate data was defined and named the standard* data. This uses the same criteria as the Standard data but ignores the contents of the occupational rating field. It therefore represents a larger subset than the Standard data (the Standard data is itself a subset of the standard* data), and consists of UK policies with no special benefit types and no identifiable underwriting exclusions (see CMI Report 18).

What is the comparison basis used in the reports?

The actual claims experience is compared against that expected using the graduated rates for the standard male lives experience on individual IP policies for 1975-78. These graduations were presented in CMI Report 12 and are referred to as SM1975-78.

Although the methodology used in these comparisons are largely as set out in CMI Report 12, there have been a few revisions made which are set out in CMI Report 15. The most important of these changes concerns the treatment of non-reported claims in the analysis of claim inception experience.

Contact Details

If you have any questions about the CMI please email

info@cmilimited.co.uk

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Events calendar

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    This webinar is intended to raise awareness of the shifting landscape of climate liability risk and what it means for actuaries, including how it impacts on their professional and legal duties. Presentations will cover the legal risks around climate change for investment consultants and actuaries advising DB pension schemes as well as consideration of climate risk for insurers.

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  • Current Issues in Life Assurance (CILA) Webinar series

    Webinar Series
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    Reinsurance, investment strategy and capital provision all have roles to play. Here, we:

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    Because of Covid-19, forecasters predict a severe recession in 2020, followed by a V or U-shaped recovery. This impacts both individuals and companies. However, compared to previous recessions, the impact on banks of higher credit losses should be mitigated to some extent by government actions. 

  • Spaces available

    Part of the Protection, Health and Care Conference 2020 webinar series

    This session will provide an overview of the Population Health Management Working Party's research including defining impactability and impactability modelling, discussing some examples of specific modelling approaches, considering the practical challenges across the NHS as well as wider public perception and ethical issues.

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  • Mortality and Longevity Webinar Series 2020

    Webinar Series
    22 July 2020 - 10 August 2020

    Spaces available

    Due to COVID-19, we are running this programme via a series of webinars commencing 22nd July.

    This webinar series will provide topical and practical updates and discussion on the latest thinking and innovations in mortality and longevity, and is designed to be very accessible to a broad range of experience.

     

  • Spaces available

    Predictive risk assessment and risk stratification models based on postcode-level consumer classification are widely used for life insurance underwriting. However, these are socio-economic models not directly related to health information. Similar to precision medicine, precision life insurance should aim to tailor policy pricing/reserving to the individual health characteristics of each client.

  • Spaces available

    As insurers look towards their internal model calibration process for 2020 final year financials and statutory returns, actuaries need to deal with the complexity of adequately modelling their business in 2020 and beyond. This discussion will look at what poor model selection and calibration could look like – using inappropriate historical data; using incorrect 2020 mortality data; inappropriate stochastic model recalibration (or lack thereof). What about being prudent vs setting a best estimate? How do you allow for tail risks during a tail risk event?  This is the fourth webinar in the Extreme Mortality Events series presented by Chair of the Life Board of the Institute and Faculty of Actuaries, Colin Dutkiewicz. 

  • Spaces available

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  • Spaces available

    Part of the Protection, Health and Care Conference 2020 webinar series

    With the rising prevalence of dementia, how can we manage this risk effectively and can insurance do more? Matt Singleton, Ageing Lead at Swiss Re, will cover these topics and demonstrate how insurance could help people address their concerns.

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    Current Issues in Life Assurance

    This talk will look at a range of such techniques (e.g. mass lapse risk transfer, contract boundaries, risk margin relief, non-standard longevity risk transfer) that have been applied or considered by UK and EU insurers, and the pros and cons of each.

     

  • Spaces available

    Current Issues in Life Assurance.

    The International Association of Insurance Supervisors announced on 14 November 2019 the adoption of v2.0 of the global Insurance Capital Standard (ICS) which will undergo confidential reporting for 5 years starting from 2020. This session will include specific experiences from Legal and General (L&G) as well as global industry perspectives from EY.

  • Spaces available

    Current Issues in Life Assurance

    This session will cover the PRA supervisory statement on financial impacts related to climate change, industry insights into PRA climate risk business plans, examples climate risk strategy setting out key workstreams and activity steps for successful execution, an overview of a climate risk strategy execution timeline and the future.     

  • Spaces available

    Part of the Protection, Health and Care Conference 2020 webinar series. Using new and unique research and data from the UK, US, Sweden and China, this presentation investigates how consumers use the internet through their insurance journey and analyzes the role culture and generation plays in their online behaviour. We use this research to show the online landscape for insurance sales in the UK and suggest ways to shape new products and effectively engage with the consumer who is buying them.

  • Spaces available

    Chief Medical Officer (CMO) for Gen Re Life/Health Research and Development, Dr John O'Brien, will discuss the impacts of Gene Modification for life/health insurance. 

  • Spaces available

    As an industry, it has been important to be able to look to the future to identify the next quantifiable risk. In this session, I will explore some of the less tangible, but none-the-less concerning risks to future health, such as the health risks associated with exposure to pesticides, ingestion of plastic in the food chain, and the hazards of indoor air pollution through exposure to volatile organic compounds.

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    The working party will help the industry to update and enhance how potential risk from diabetes and excess mortality is considered, including the need to understand the underwriting implications as treatments improve, and potentially to develop new products that are tailored to those with diabetes.

  • Spaces available

    Part of the Protection, Health and Care Conference 2020 webinar series. Modelling the structure and trends of cancer morbidity risk is important for pricing and reserving in related health insurance fields such as critical illness insurance and care provision. We model the dynamics of cancer incidence over time in different regions in England, using 1981-2016 ONS data. The modelling allows estimation of cancer rates at various age, year, gender and region levels, following a Bayesian setting to account for statistical uncertainty. Our analysis indicates significant regional variation in cancer incidence rates. 

  • Spaces available

    Part of the Protection, Health and Care Conference 2020 webinar series. In this talk we will outline the steps Aviva took in pulling together our first large-scale disclosures on the exposure of our business to climate change published in March 2019; in line with the recommendations of the Taskforce on Climate-related Financial Disclosures. After touching on why insurers have such an important role in climate change, we'll cover a brief “how-to” guide for those who have not yet embarked on thinking about these topics before giving a case study of how the learnings from a TCFD disclosure exercise can be applied to investment portfolios.

  • Spaces available

    Part of the Protection, Health and Care Conference 2020 webinar series. 

    The insurance industry currently underwrites customers with diabetes based on a range of factors, medical expertise and various medical studies. The work undertaken by the Diabetes Working Party would help the industry to approach this using current research findings to update and enhance how potential risk from diabetes is considered. This includes the need to understand the underwriting implications as treatments improve, and potentially to develop new products that are tailored to those with diabetes. This webinar will present our latest findings in the management of this important chronic condition which will include research in collaboration with the ARC.