Description: This paper explores available disability experience data in order to shed some light on the character and extent of the subjective influences which affect the frequency and duration of disability. A mathematical model for computing disability income premiums and reserves is also presented.

Description: A simple short-term disability model is developed, where the loss process is comprised of two processes: new claims process and continuing claims process. This results in a surplus function with stationary dependent increments. Three dimensional transitional probabilities are needed to model the transitions of this non-Markovian process. An approximating model with stationary independent increments is found. The approximating model leads to bounds for the finite probability of ruin. Numerical comparisons are made.

Description: In this paper a method is described for pricing - and reserving for- return of premium benefits under disability income policies. Followed by a discussion paper