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.

Related documents

Contact Details

If you have any questions about the CMI please email

info@cmilimited.co.uk

Filter or search events

Start date
E.g., 04/03/2021
End date
E.g., 04/03/2021

Events calendar

  • Finance in the Public Interest Series

    16 March 2021 - 23 March 2021

    Spaces available

    There is widening debate that many of our social, financial and regulatory institutions need to be rethought so that we can create more sustainable futures, particularly in light of the Covid-19 pandemic, the policy/macro-economic response to the pandemic and how it affects consumers, as well as the impending climate crisis. This multi-day series of three keynote webinars, individually presented by leading economist John Kay, Sir Paul Collier, Professor of Economics and Public Policy at the Blavatnik School of Government, Ashok Gupta, Chair at Mercer Ltd, and Nico Aspinall, Chief Investment Officer at B&CE, will open up discussion on these essential topics. The series will culminate in a panel session with Chief Economist of the Bank of England, Andy Haldane.

  • The price is righter

    16 March 2021

    Spaces available

    This webinar provides an overview of the state of the UK protection market, and how different insurers are using different levels of sophistication to price (such as using customer demand models). It considers how insurers have implemented these sophisticated pricing techniques, and the practical challenges they have faced.

  • Spaces available

    This discussion will revolve around the latest industry developments including and introduction to Part VII transfers and Schemes of Arrangement (process, parties involved and recent events), insights and lessons from recent with-profits transactions and restructurings (including Equitable Life and Pru-Rothesay), how firms can apply these learnings to future arrangements, and the outlook for future with-profits transactions and restructurings (including the impacts of Covid-19 and Brexit)

     

  • Spaces available

    What is stewardship and how has the landscape changed under the 2020 UK Stewardship Code? How does effective stewardship create long term value for beneficiaries and what roles do asset owners and asset managers play in active stewardship. This webinar will offer answers to these questions in a practical approach to stewardship reporting.

  • Spaces available

    Mis-estimation risk is a key element of demographic risk, and past work has focused on mis-estimation risk on a run-off basis.  However, this does not meet the requirements of regulatory regimes like Solvency II, which demands that capital requirements are set through the prism of a finite horizon like one year.  This paper presents a value-at-risk approach to mis-estimation risk suitable for Solvency II work.