CMI Working Paper 131

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. More information is provided in Working Paper 149, and a spreadsheet of indicative adjustments to the claim inception rates is provided alongside Working Paper 136. Terminations experience is unaffected.

All CMI subscribers were contacted to notify them of this issue.

CMI Working Paper 131

CMI Working Paper 131 was originally published in April 2020. Updated versions of Working Paper 131 were released in March and April 2021 to note the discovery of an underlying data issue and signpost users to more information. The working paper contains a consultation on the proposed “IP11” claim inception and termination rates of CMI income protection experience in the period 2007-2016. CMI Working Paper 136 was published in September 2020, responding to this consultation. Note: this paper and the accompanying spreadsheets are available to Authorised Users only.

Three Excel spreadsheets were released alongside this paper:

• “IP11” claim inception and sample termination rates (no longer available). The proposed rates released for consultation have been finalised, as noted in Working Paper 136. A spreadsheet of “IP11” claim inception rates, and indicative adjustments following discovery of underlying data issues, is available alongside that paper. “IP11” claim termination rates can be derived using the latest version of the CMI IP Rate Table Tool, which incorporates the “IP11” rates.
   
• The data underlying the graduations. The inceptions data can be used in conjunction with the “CMI Graduation software v0.2 (beta)”, which accompanied Working Paper 77, to replicate the proposed “IP11” graduations or test alternative methods. Note: this dataset has not been updated to reflect the data issues noted above so should be used only with caution.
   
• A spreadsheet comparing the experience of the 2007-2016 dataset with the proposed graduations, showing the results of statistical tests and output from the CMI Graduation Software for the inceptions graduations. Note: this spreadsheet has not been updated to reflect the data issues noted above.