The CMI Income Protection (IP) Committee has produced new graduations of individual IP sickness inception and termination experience using the multiple state model approach described in CMIR 12 in six working papers

The graduations are based on the experience of male, occupation class 1 lives for individual IP business for 1991-98 and will be referred to as IPM 1991-98.

The complexity of IP risks and limitations in the data have contributed towards the work producing these graduations being spread over a number of years and the results, including graduated sickness inception and termination rates, being presented in five inter-related working papers, totalling nearly 300 pages.

To help practitioners benefit from this large body of work, an overview paper has also been produced.

CMI Working Paper 48: An Overview of the Sickness Inception and Termination Rate Graduations provides an overview of the work presented in the five inter-related working papers

CMI Working Paper 48 summarises both the methodology and the key features of the graduations and experience. It is hoped that this paper will meet the needs of many IP practitioners on a stand-alone basis, and that it will also serve to provide an introduction and contextual ‘road map’ for the longer papers for those readers who wish to follow through all the detail.

CMI Working Paper 46: and CMI Working paper 47 present the work undertaken to produce the graduations of the sickness inception experience

CMI Working Paper 46: Background Papers on the Analysis of CMI Individual Income Protection Claim Records. This paper contains four short papers that present features of the claims data and changes to the initial processing of this data and report results of background investigations.

CMI Working paper 47: The Graduation of Sickness Rates for the CMI Individual Income Protection Experience 1991-98 of Males, Occupation Class 1. This is the main paper describing the development of the new graduations of the sickness inception experience.

Download a spreadsheet of IPM 1991-98 claim inception intensities.

CMI Working Paper 5, Working Paper 6 and Working Paper 7 present the work undertaken to produce the graduations of the termination experience

This work was carried out before embarking on the graduation of the inception experience as the multi-state model demands this.

CMI Working Paper 5: The Graduation of Claim Recovery and Mortality Intensities for the Individual IP Experience for 1991-98 of Males, Occupation Class 1. This is the main paper describing the development of the new graduations of the termination experience.

CMI Working Paper 6: Date-related Features of Individual Income Protection Claims 1975-1998. This paper describes some features which emerged during the detailed examination of the claims records during the course of the work undertaken to produce graduations of the termination experience.

CMI Working Paper 7: The Claim Termination Experience of Income Protection Business, 1991-98, for Other Male Occupations, Females and Group. This paper compares the experience of other subsets of the 1991-98 data with the new termination graduations, which were based on the male, class 1 experience.

These Working Papers refer to the Committee’s intention to recommend the IPM 1991-98 rates for ‘adoption’ by the IFoA

It was subsequently agreed that the concept of adoption was no longer relevant and this was not pursued. It should not be inferred that there was any dilution of quality standards in respect of the IPM 1991-98 tables.

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