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Income protection investigation

The CMI investigates the sickness experience of income protection policyholders
Note: The Committee is currently holding a consultation on the proposed “IP06” claim inception rates. Find out more

Brief history

A sub-committee of the CMI was set up in 1970 to investigate sickness rates under policies providing permanent health insurance, now better known as income protection. The main dataset extends back to 1975 although occupation class is only included from 1991. There are separate pools for individual business (still open) and group business (closed 2006).

Data and methodology

Data is submitted annually by life offices. Records are generally provided for each individual policy at the start and end of the year, and for each claim in payment during the year, although we are flexible with formatting. See CMI data for more information about data submission. 

Initially the investigations used a Manchester Unity approach, but now the experience is analysed in terms of claim inceptions and terminations (by recovery or death). The current methodology is described in CMI Working Paper 59.


Subscribing life offices receive results in respect of the business for which they have submitted data. Aggregate 'All offices' results are also produced. CMI Working Paper 96 presents the most recent published analysis covering the period 2007 to 2010. 

The actual claims experience is compared with that expected using the graduations IPM 1991-98 which reflect the experience of male lives in CMI occupation class 1 policies for 1991-98. An overview of these graduations is presented in CMI Working Paper 48.

Claim experience tables

The Committee is currently holding a consultation on the proposed “IP06” claim inception rates, based on individual IP experience of males and females, separately by occupation class, in 2003-2010.

The CMI has previously published two main sets of graduated rates for individual IP claim inceptions and terminations. The first graduations, SM1975-78, were presented in CMI Report 12 and reflect the standard male lives experience on individual IP policies for 1975-78. The second, IPM 1991-98, is noted above.

The CMI Income Protection Rate Table Tool is a spreadsheet-based application, designed to assist practitioners in deriving claim inception and termination rates, as well as other factors required for their in-house profit testing, valuation and experience analysis tools, such as claim annuity values. It is intended to help practitioners make full use of the published graduations and experience.

Further analysis

An analysis of individual Income Protection experience, 1991-2009, by cause of sickness is contained in CMI Working Paper 72.  An accompanying spreadsheet containing two databases, covering inceptions and terminations experience, was also made available to enable practitioners to pursue further investigations. An updated version of these databases, covering 1991-2010, was released alongside Working Paper 96 in which some of the previous analyses were updated.

Supplementary analyses to those included in regular ‘all offices’ results were released in Working Paper 102. These consider IP experience in 2003-2010 by benefit amount and policy duration.

Related documents

Contact Details

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