Experience Studies - 1996 Group Long-Term Disability Experience Study & Tables

Experience Studies – Group Disability

In the mid-90's, work was undertaken for Group Long-Term Disability. A number of items were produced. Initially, the results were suspect, but subsequent work (in progress) suggests these earlier results were not far from the mark. Below are descriptions and links to this material.

Group LTD Termination Tables A/E Reports & Program

There are 2 reports describing A/E termination rates by segment for both the preliminary table (appears in Group LTD Termination Tables) and the 87 CGDT. There is also a program, Table95, which is DOS executable that will create tables from supplied input and a text file which gives instructions on the Table95 program. This zipped file decompresses to 4 files (3 TXT, 1 EXE).

Preliminary Group LTD Termination Table

In order to finalize the 1995 termination study, Nick Smith developed the preliminary Group Long-Term Disability Termination Tables. The purpose of the preliminary tables was to see what they looked like, spot anomalies and get feedback on the structure. This zipped file decompresses to 3 Excel spreadsheets.

The 1996 Group Long-Term Disability Experience Study examines termination experience split by deaths and recoveries. Reports include: Claim Termination, Recovery and Death Timing, Incurred But Not Reported (IBNR) and Social Security. In addition, new valuation derivative reports have been provided to analyze the impact on pricing and valuation of this experience.

The purpose of the 1996 SOA Group LTD Experience Study Companion Spreadsheet is to demonstrate the impact of the new LTD experience, Table 95 and Table 95a, and to provide a comparison to the current valuation basis (CGDT & CGDT Basic). A secondary purpose is to illustrate various LTD reserving concepts and to provide the means to test their impact. The spreadsheet is not intended for commercial use and should not be used as a valuation system. This zipped file decompresses to an Excel file as well as a MS Word readme file and user manual.