SESSION/SÉANCE : PD-11 (Life) Critical Illness Experience Trends SPEAKER(S)/CONFÉRENCIER(S) : Ben Miclette, FCIA, FSA

Transcription

1 SESSION/SÉANCE : PD-11 (Life) Critical Illness Experience Trends SPEAKER(S)/CONFÉRENCIER(S) : Ben Miclette, FCIA, FSA

2 Preliminary Results from First Canadian CI Morbidity Claims Experience Study

3 Details on the study Policies with anniversaries from 2002 to 2007 Uses CIA incidence tables as Expected Published in July 2012 Excludes: Policies under age 20 Partial benefits Substandard policies Policies offering CI as acceleration on Life policy Group and creditor insurance

4 Participating Companies Canada Life Desjardins Financial Security Great-West Life Assurance Company Industrial Alliance Industrial Alliance Pacific Manulife Financial RBC Life Insurance Company Sun Life Financial

5 Confidentiality Rules In any given cell: No less than 4 companies represented At most a 55% representation by any one company A cell is a row in a table, for example: Combination of attained age/smoking status/sex

6 Details on Expected Tables Every table is unismoke Does not reflect any expected selection period Every CI condition was trended to 01/01/2008 Exposure is based on: Exact number of conditions in each policy Reflects limitations on age/amount on certain CI

7 Summary of Claims and Exposure OVERALL MALES FEMALES Claims Exposures Claims Exposures Claims Exposures Number 1, , , ,013 Amount ($M) $161 $70,849 $92 $39,061 $69 $31,787 Average $88,418 $86,637 $99,195 $97,227 $77,195 $76,409

8 Experience results by Smoking Status A/E by number A/E by amount Overall Male Female Overall Male Female Total Experience Smoker Non-Smoker

9 Experience results by Face Amount A/E by number A/E by amount Overall Male Female Overall Male Female All amounts Face Amount < $50, Face Amount $50,000-$99, Face Amount $100,000-$249, Face Amount $250,000 and over

10 Experience results by CI Group A/E by number A/E by amount # Claims Overall Male Female Overall Male Female All conditions 1, Cancer Group 1, Cardio Group Organ Group Neuro Group Accident/Infectious LOIE Cancer: Life Threatening Cancer, Benign Brain Tumor, Early Prostate (full payment only), Aplastic Anaemia Cardio: Heart Attack, Coronary Artery Bypass, Aortic Surgery, Stroke, Heart Valve Surgery Organ: Kidney/Renal Failure, Major/Vital Organ Failure/Transplant Neuro: Multiple Sclerosis, Parkinson s, Alzheimer s, ALS/Motor Neuron Disease Accident/Infectious: Blindness, Coma, Deafness, Loss of Limbs/Dismemberment, Loss of Speech, Occupational HIV Infection, Paralysis, Severe Burns, Bacterial Meningitis LOIE: Loss of Independence

11 Experience results by Duration All conditions A/E by number A/E by amount Overall Male Female Overall Male Female Duration Duration Duration Duration Duration Duration Duration

12 A/E results by Duration All conditions Male by Number Female by Number Male by Amount Female by amount

13 Experience results by Duration LT Cancer A/E by number A/E by amount Overall Male Female Overall Male Female Duration 1 LT Cancer Duration 2 LT Cancer Duration 3 LT Cancer Duration 4 LT Cancer Duration 5 LT Cancer Duration 6 LT Cancer Duration 7+ LT Cancer

14 Experience results by Duration Heart Attack A/E by number A/E by amount Overall Male Female Overall Male Female Duration 1 Heart Attack Duration 2 Heart Attack Duration 3 Heart Attack Duration 4 Heart Attack Duration 5 Heart Attack Duration 6 Heart Attack Duration 7+--Heart Attack

15 Experience results by Duration - Stroke A/E by number A/E by amount Overall Male Female Overall Male Female Duration 1 Stroke Duration 2 Stroke Duration 3 Stroke Duration 4 Stroke Duration 5 Stroke Duration 6 Stroke Duration 7+--Stroke

16 A/E by Number - Male Overall LT Cancer Heart Attack Stroke

17 A/E by Amount- Male Overall LT Cancer Heart Attack Stroke

18 A/E by Number - Female Overall LT Cancer Heart Attack Stroke

19 A/E by Amount - Female Overall LT Cancer Heart Attack Stroke

20 Average Claim Amount by Condition 300, , , , ,000 50,000 - Note: Number of claims by condition in bracket. Overall Male Female

21 Experience results by Return of Premium (RoP) A/E by number A/E by amount Overall Male Female Overall Male Female All (RoP and No RoP) RoP other than death RoP on death only RoP on death and other events (same policy) All RoP No RoP N/A due to confidentiality rules

22 Considerations when looking at results Study still under review by committee Credibility (< 2,000 claims) Smoking Expected tables are unismoke % smoking insured general population Definitions have changed over the last decade - CLHIA Benchmark definitions introduced in 2008 Number of illnesses stabilized around 2006 Partial conditions are excluded Morbidity trend over study period

23 Future Plans for the study of CI Publish study later this year Periodic review Separate review of partial conditions Possible future research projects on CI policies Update to Expected table? Review of Lapse experience? Review of Mortality experience?

24 Living Benefits Subcommittee of the CIA Research Committee Marc-André Belzil Emile Elefteriadis Ben Miclette Banasha Shah Blake Hill Frédéric Jacques Geoff Macdonell Maria Semak Martin Vezina (Research Committee Chairperson) (Past Subcommittee Chairperson) (Subcommittee Chairperson) Graham Dixon Ian Jack Alethea Lyn Anke Roman Debra Shelley