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November 25, 2009 at 07:00 PM
Long-term disability claimant recovery rates have been improving in recent years, actuaries have told state insurance regulators.
The Accident and Health Working Group at the National Association of Insurance Commissioners, Kansas City, Mo., received a presentation earlier this week on preliminary results from a group LTD claims experience study conducted by a committee at the Society of Actuaries, Schaumburg, Ill.
A unit of MIB Group Inc., Braintree, Mass., has helped the committee get data on 1.2 million group LTD claims from 21 carriers, including most of the top 15 carriers.
The SOA conducted another major group LTD experience study in 1995, and that study produced Table 95a.
“The current study shows recoveries that are high relative to the Table 95a expectations, especially in the third year of duration and in years 6 through 8,” SOA committee members write in a 2008 LTD experience report. “The death rates are generally lower than Table 95a; much more so in earlier claim durations. We speculate that these differences may be caused by generally less severe disabilities than was observed during the 1995 study, as well as by improvements in claim management.”
