1. 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

2. Living Benefits Hot Topics
Frédéric Jacques
November 30, 2007

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

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

5. 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

6. 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

7. CIA LIVING BENEFITS Experience Subcommittee
Next Steps
Experience Study – finalize a template for claims information and send to insurers

8. 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

9. 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

10. LTC sales trend
At the end of 2006, approximately 56,000 Canadians had LTC
Source: LIMRA International

11. LTC Sales
Source: LIMRA

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

13. Thank you