Transcript Canadian Institute of Actuaries L’Institut canadien des

Canadian
Institute
of
Actuaries
2007 General Meeting
Assemblée générale 2007
Montréal, Québec
L’Institut
canadien
des
actuaires
2007 General Meeting
Assemblée générale 2007
Living Benefits Hot Topics
Frédéric Jacques
November 30, 2007
Agenda
•
CI
–
2007 General Meeting
Assemblée générale 2007
–
–
–
•
LTC
–
–
•
Sales
CIA Experience Subcommittee Update
Benchmark Definitions Update
Floor Discussion
Sales
Floor Discussion
DI
–
–
Sales
Floor Discussion
CI sales trend
125
% Change
2007 General Meeting
Assemblée générale 2007
100
109
Ann. Prem.
91
75
63
43
50
34
25
11
1
0
-5
-3
'06
3q07
-25
'99
Source:
'00
'01
'02
'03
'04
Canadian Individual Critical Illness Insurance Survey,
LIMRA International
'05
2007 General Meeting
Assemblée générale 2007
CIA LIVING BENEFITS
Experience Subcommittee
Who are we?
• Emile Elefteriadis
• Dominic Hains
• Graham Dixon
• Alethea Lyn
• Chris Piper
• Banasha Shah
• Cathy Shum-Adams
Charlie Philbrook
Ian Jack
Geoff MacDonell
Anke Roman
Debra Shelley
Frédéric Jacques
2007 General Meeting
Assemblée générale 2007
CIA LIVING BENEFITS
Experience Subcommittee
• The goal is the production of a report similar to
Staple Inn paper of CI insurance
• Key elements of the report would include:
– Market and product information in order to provide
context
– Development of theoretical incidence rates
• First time diagnosis
• Population level
• In aggregate; not smoker distinct
– Discussion on the types of adjustments to develop
incidence rates for the insured population
– Review of international experience where available
– The experience study should show results by age,
sex, policy year, smoking status, and by impairment
CIA LIVING BENEFITS
Experience Subcommittee
2007 General Meeting
Assemblée générale 2007
• Next Steps
– Experience Study – finalize a
template for claims information and
send to insurers
2007 General Meeting
Assemblée générale 2007
Definitions Project
Three Main Objectives
1. Update the definitions for the covered CI
conditions which no longer accurately describe
the covered condition or reflect current practices
or diagnosis process
2. When the intent of a condition is to cover the
same risk, a “benchmark” definition which is
clear, concise and objective and as similar as
possible across the industry should be used by
insurers and reinsurers
3. It is appropriate for a definition to differ from the
benchmark definition only when a definition
offers additional material coverage
2007 General Meeting
Assemblée générale 2007
Next Steps
• Finalize definitions
• Insurance companies to decide if
and when they will adopt them
• Communicate to advisors
• Attract more advisors to sell CI
insurance
• Increase in sales
LTC sales trend
At the end of 2006, approximately 56,000 Canadians had LTC
2007 General Meeting
Assemblée générale 2007
Annualized Premium (000's)
$64,967
$56,470
$45,922
$10,646
2004
$12,896
2005
Sales
Source: LIMRA International
$10,895
In Force
2006
LTC Sales
LTC Sales in Canada
14,000
2007 General Meeting
Assemblée générale 2007
12,000
10,000
8,000
6,000
4,000
2,000
0
1999
2000
2001
Lives
Source: LIMRA
2002
2003
2004
Premiums ($000s)
2005
2006
DI sales trend
Ann Prem
5
% Change
2007 General Meeting
Assemblée générale 2007
10
0
-5
-10
'00
'01
'02
'03
'04
'05
'06
Source: Canadian Individual Disability Income Insurance Sales,
U.S. Individual Disability Income Insurance Sales,
LIMRA International
3q07
2007 General Meeting
Assemblée générale 2007
Thank you