This might be a good time for the National Association of Insurance Commissioners (NAIC) to start the process of updating individual disability insurance valuation tables.
Members of the Individual Disability Experience Committee (DEC) at the Society of Actuaries made that argument recently in a presentation made to the Health Actuarial Task Force (HATF), an arm of the NAIC.
IDEC members told the task force that the SOA now has created the Individual Disability Experience Table, a new table based on data for the period from 1990 to 2007, that could be the basis for a valuation table update.
A valuation table is an official table that a regulator uses to evaluate an insurer’s operations.
IDEC members want the committee to acknowledge that the new Individual Disability Experience Table exists, ask the American Academy of Actuaries (AAA) to sponsor the development of a new valuation table, and have IDEC help the AAA develop the valuation table.
IDEC said it would like to see HATF receive an AAA recommendation for a new valuation table by December 2013.