Assumptions¶
Best Estimate¶
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BEST¶ Assumption set for best estimate assumptions.
Assumptions
- Claim Termination Rate (CTR) [ctr] :
Not implemented yet.
- Incidence Rates [incidence_rates] :
Not implemented yet.
- Interest Rate - Active Lives [interest_rate_al] :
Not implemented yet.
- Interest Rate - Disabled Lives [interest_rate_dl] :
Not implemented yet.
- Mortality Rates [mortality_rates] :
Not implemented yet.
- Lapse Rates [lapse_rate] :
Not implemented yet.
GAAP¶
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GAAP¶ Assumption set for GAAP assumptions.
Assumptions
- Claim Termination Rates (CTR) - Select [ctr_select] :
The claim termination rate (ctr) is the probability that a person goes off disability.
The CTR does not distinguish terminations between recoveries or mortality. In addition, the CTR is split into select rates (duration years 1 - 10) and ultimate rates (years 11+).
The select rate is a function of -Base rate (table lookup by IDI occupation class / gender / elimination period / age incurred / duration)x Benefit period modifier (table lookup by IDI benefit period / cola flag / duration year)x Cause modifier (table lookup by IDI contract type / gender / duration year / DLR vs ALR)x Contract modifier (table lookup by IDI contract type / duration year)x Diagnosis modifier (table lookup by diagnosis / duration year)x 1 - Margin adjustment (5% in duration year 1 and 15% in durations 2+)- Claim Termination Rate (CTR) - Ultimate [ctr_ultimate] :
The claim termination rate (ctr) is the probability that a person goes off disability.
The CTR does not distinguish terminations between recoveries or mortality. In addition, the CTR is split into select rates (duration years 1 - 10) and ultimate rates (years 11+).
The ultimate rate is a function of -Base rate (table lookup by IDI occupation class / gender / age attained)x 1 - Margin adjustment (15% in all durations)- Claim Termination Rates (CTR) [ctr] :
The claim termination rate (ctr) is the probability that a person goes off disability.
This assumption combines -1. the Select CTR (ctr_select) for claim duration years 1-10 and2. the Ultimate CTR (ctr_ultimate) for claim duration years 11+.- Incidence Rates [incidence_rates] :
Incidence rate is the probability of a policy holder becoming disabled.
The incidence rate is a function of -Base rate (table lookup by Acc vs Sick / IDI occupation class / gender / elimination period / age attained)x Benefit period modifier (table lookup by IDI occupation class / IDI benefit period / elimination period)x Contract modifier (table lookup by IDI contract)x Market modifier (table lookup by IDI market)x Tobacco modifier (table lookup by IDI occupation class / gender / elimination period / tobacco usage)- Interest Rate - Active Lives [interest_rate_al] :
STAT/GAAP active life (AL) interest rate assigned based on policy start date.
- Interest Rate - Disabled Lives [interest_rate_dl] :
STAT/GAAP disabled life (DL) interest rate assigned based on incurred year.
- Mortality Rates [mortality_rates] :
Specify mortality table.
- Lapse Rates [lapse_rates] :
Lapse rate is the probability of a policy terminating from all causes less death (which is captured under mortality rate).
Lapse rates are stored in a tabular format and vary by issue age and duration year.
Statutory¶
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STAT¶ Assumption set for statutory assumptions.
Assumptions
- Claim Termination Rates (CTR) - Select [ctr_select] :
The claim termination rate (ctr) is the probability that a person goes off disability.
The CTR does not distinguish terminations between recoveries or mortality. In addition, the CTR is split into select rates (duration years 1 - 10) and ultimate rates (years 11+).
The select rate is a function of -Base rate (table lookup by IDI occupation class / gender / elimination period / age incurred / duration)x Benefit period modifier (table lookup by IDI benefit period / cola flag / duration year)x Cause modifier (table lookup by IDI contract type / gender / duration year / DLR vs ALR)x Contract modifier (table lookup by IDI contract type / duration year)x Diagnosis modifier (table lookup by diagnosis / duration year)x 1 - Margin adjustment (5% in duration year 1 and 15% in durations 2+)- Claim Termination Rate (CTR) - Ultimate [ctr_ultimate] :
The claim termination rate (ctr) is the probability that a person goes off disability.
The CTR does not distinguish terminations between recoveries or mortality. In addition, the CTR is split into select rates (duration years 1 - 10) and ultimate rates (years 11+).
The ultimate rate is a function of -Base rate (table lookup by IDI occupation class / gender / age attained)x 1 - Margin adjustment (15% in all durations)- Claim Termination Rates (CTR) [ctr] :
The claim termination rate (ctr) is the probability that a person goes off disability.
This assumption combines -1. the Select CTR (ctr_select) for claim duration years 1-10 and2. the Ultimate CTR (ctr_ultimate) for claim duration years 11+.- Incidence Rates [incidence_rates] :
Incidence rate is the probability of a policy holder becoming disabled.
The incidence rate is a function of -Base rate (table lookup by Acc vs Sick / IDI occupation class / gender / elimination period / age attained)x Benefit period modifier (table lookup by IDI occupation class / IDI benefit period / elimination period)x Contract modifier (table lookup by IDI contract)x Market modifier (table lookup by IDI market)x Tobacco modifier (table lookup by IDI occupation class / gender / elimination period / tobacco usage)- Interest Rate - Active Lives [interest_rate_al] :
STAT/GAAP active life (AL) interest rate assigned based on policy start date.
- Interest Rate - Disabled Lives [interest_rate_dl] :
STAT/GAAP disabled life (DL) interest rate assigned based on incurred year.
- Mortality Rates [mortality_rates] :
Specify mortality table.
- Lapse Rates [lapse_rates] :
Lapse rate is the probability of a policy terminating from all causes less death (which is captured under mortality rate).
For STAT, the lapse rate is not considered thus the rate is set to 0.