Important note: “IP11” claim inception rates
We have identified issues with some of the data underlying the “IP11” claim inception rates leading to an overstatement of inceptions exposure and therefore an understatement of claim inception rates.
The CMI IP Tool and the “IP11” graduations themselves have not been updated but users should refer to the information provided in Working Paper 149 and the spreadsheet of indicative adjustments to the claim inception rates, provided alongside Working Paper 136.
Terminations experience is unaffected.
All CMI subscribers were contacted to notify them of this issue.
CMI Income Protection Rate Table Tool
This is a spreadsheet-based tool, 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 – notably the “IP11” termination rates and earlier graduations which were published as formulae – and experience. Version 1.2 incorporates the “IP11” claim inception and termination rates which were finalised alongside Working Paper 136 in September 2020.
The Tool allows straightforward calculation of inception and termination rates, and includes secondary functions to calculate rates of decrement, continuance probabilities and claim annuity values. Examples are provided to demonstrate use of these functions and to help enable users to tailor them to their own needs.
A user guide provides documentation for the CMI IP Tool.
If you have any questions about the CMI please email
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