1. 2007 Annual Meeting ● Assemblée annuelle 2007 Vancouver Denis Garand Denis@garandnet.net 2007 Annual Meeting ● Assemblée annuelle 2007 Vancouver Denis Garand Denis@garandnet.net Canadian Institute of Actuaries Canadian Institute of Actuaries L’Institut canadien des actuaires L’Institut canadien des actuaires

2. Recent experience in STD with contributions from Donna Swiderek Short term disability products are designed to cover Accident, Hospitalization, and Sickness coverage with weekly payments after a set waiting period for a specific number of weeks. Experience based on CY 2001-2006

3. Distribution of exposure 2007 Annual Meeting Assemblée annuelle 2007

4. Incidence of claims by cause

5. Average age of claims by cause

6. Duration of claims in days

7. Incidence and Duration of claims The incidence rate is ~10% –Male 44% of Female –STD from age 22 to 62 is 200% –Fraser-Garand LTD range ~800%

8. Termination rates Duration of claim –Male 46 days –Female 27 days

9. Actual to expected net claims cost

10. State of STD rating Most rating methods out of date Companies rely on experience Interesting to develop information –To better understand evolution of claims –Helps understand LTD

11. STD Mostly experience rated Most manual rates very dated High credibility of data due to high incidence Worth monitoring over time