Working paper 72: Analysis of Individual Income Protection Experience, 1991-2009, by Cause of Sickness

The 73 individual causes of sickness recorded in the data have been grouped into 15 ‘medically similar’ cause of sickness groups. The analysis of claim inceptions investigates which causes of sickness are most significant by age, sex, deferred period, occupation class and over time. The analysis of claimant recoveries shows that there are marked differences between the overall claim terminations experience of different cause groups which cannot be explained by variations in other rating factors.

The paper includes two separate further analyses that are linked to the analysis of claim inceptions. An analysis of cause of sickness by matched duration considers how the distribution of cause of sickness varies by deferred period. A preliminary analysis of the distribution of claim cost by cause of sickness builds on previous work to demonstrate the disparity between the distributions of claim incidence and claim cost by cause of sickness.

The paper also reviews previous research that has been carried out on this topic.

The accompanying spreadsheet contains two databases, covering inceptions and terminations experience, to enable practitioners to pursue further investigations.

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