2007 General Meeting Assemblée générale 2007 Montréal, Québec Canadian Institute of Actuaries L’Institut canadien des actuaires 2007 General Meeting Assemblée générale 2007 Montréal, Québec

Living Benefits Hot Topics Frédéric Jacques November 30, 2007

Agenda CI LTC DI Sales CIA Experience Subcommittee Update Benchmark Definitions Update Floor Discussion LTC DI

CI sales trend Source: Canadian Individual Critical Illness Insurance Survey, LIMRA International

CIA LIVING BENEFITS Experience Subcommittee Who are we? Emile Elefteriadis Dominic Hains Charlie Philbrook Graham Dixon Ian Jack Alethea Lyn Geoff MacDonell Chris Piper Anke Roman Banasha Shah Debra Shelley Cathy Shum-Adams Frédéric Jacques

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 Next Steps Experience Study – finalize a template for claims information and send to insurers

Definitions Project Three Main Objectives Update the definitions for the covered CI conditions which no longer accurately describe the covered condition or reflect current practices or diagnosis process 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 It is appropriate for a definition to differ from the benchmark definition only when a definition offers additional material coverage

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 Source: LIMRA International

LTC Sales Source: LIMRA

DI sales trend Source: Canadian Individual Disability Income Insurance Sales, U.S. Individual Disability Income Insurance Sales, LIMRA International

Thank you