The Impact of Diagnosis on Individual DI Recovery and Mortality Rates from 2006 through 2014 – Phase 1
Authors
Robert W. Beal, FSA, MAAA
Retired Actuary
Thomas R. Corcoran, FSA, MAAA, CERA
Retired Actuary
Description
This study was developed to analyze how individual disability income (IDI) claim recovery and mortality experience vary by diagnosis over select claim durations. This study has been prepared by the Individual Disability Experience Committee (IDEC). This is the first IDI experience study to split select claim termination experience between recovery and mortality, as prior IDI claim studies by diagnosis have looked at terminations for recovery and mortality combined. We refer to this study as the ‘2024 IDEC Study’.
The objective of this study is to demonstrate how diagnosis is a major driver of claim experience, independent of other claim variables. Termination experience patterns by diagnosis vary significantly between the recovery and mortality components. The 2024 IDEC Study provides new information and insights into how diagnosis codes affect IDI disabled life recovery and mortality experience by gender, occupation class and onset age.
This is a large undertaking, and the work has been divided into two phases with separate reports for each phase. In the first phase, which this report covers, the scope has been limited to accident and sickness (A&S) policies with a 90-day elimination period and To Age 65-70 benefit periods. As a result of this selection, significant discontinuities in recovery and mortality rates that are associated with different elimination and benefit periods are avoided and the impact on recovery and mortality rates due to the various diagnoses can be observed more clearly. Phase 2 of the 2024 IDEC Study, which will be covered in a subsequent report, will measure the impact of elimination period and benefit period on recovery and mortality rates at the diagnosis level.
Materials
Acknowledgements
The authors’ deepest gratitude goes to those without whose efforts this project could not have come to fruition: the Individual Disability Experience Committee and others for their diligent work in reviewing and editing this report for accuracy and relevance.
Individual Disability Experience Committee:
Jay A. Barriss, (Chair), FSA, MAAA
Tasha S. Khan, (Vice Chair), FSA, MAAA
Viresh G. Bawa, FSA, CERA, MAAA
Jordan E. Cadorette, FSA, MAAA
Derrick F. Haddad, FSA, CERA, MAAA
Charles P. Herman, FSA, MAAA
Mitchell Huppenbauer, FSA, MAAA
Martin Jeung, FSA, FCIA
Chris Keffalos, ASA, MAAA
Tracy K. Koch, FSA, MAAA
Christopher J. Kozol, ASA, MAAA
Jamie Maestri, ASA, MAAA
Beth Neas, FSA, MAAA
Maureen A. Shaughnessy, FSA, MAAA
Daniel D. Sim, FSA, MAAA
Robert Spangler, FSA
Jonah Yearick, FSA, CERA, MAAA
Ying Zhou, FSA, CERA, MAAA
At the Society of Actuaries Research Institute:
Korrel Crawford, Senior Research Administrator
Kathryn Eubank, FSA, MAAA, Senior Experience Studies Actuary
Patrick Nolan, FSA, MAAA, Senior Director of Experience Studies
Barbara Scott, Senior Research Administrator
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