Continuation rates have been added to the claim study functionality to complement the termination rates.

Continuation rates enhance termination studies, for example a Termination Actual to Expected of 60% doesn’t given an indication of the appropriateness of the shape of the curve, whereas a Continuation Actual to Expected of 200% tells you that the actual average claim duration is twice as long as the expected average claim duration.  Also, the Continuation Actual to Expected indicator is consistent in direction with other indicators, higher is worse, and the Continuation Sum (Claim Cost) gives the true financial impact.

This consists of six measures:

• Continuation by Count (on Claim Term Actual Measure Group)
• Expd Continuation by Count (on Claim Term Expected Measure Group)
• Continuation A/E by Count (on Claim Term Actual Measure Group)
• Continuation by Benefit (on Claim Term Actual Measure Group)
• Expd Continuation by Benefit (on Claim Term Expected Measure Group)
• Continuation A/E by Benefit (on Claim Term Actual Measure Group)

The Continuation measure operates in conjunction with the Duration Open dimension (new) and not the Duration Claim (Incurred).

Continuation rates since opened are calculated from the respective Termination rates (actual or expd, count or benefit).

At the Duration Open All level, the sum of the (ending) monthly continuation rates is presented. This is the expectation of continuation, which can be interpreted as either the average monthly duration since opened, or the claim cost without discounting.

Any drill down or filter on an attribute (other than Duration Open) will return the Continuation Sum for that subset) (including Duration Claim).  A drill down on Duration Open will show the Continuation rates to the month/year etc. A filter on Duration Open will have no impact on the Continuation Sum at the Duration Open All level.

We have also added an Interest Rate dimension containing rates 0%-5% at 1% increments, with default 0%.

With a rate other than 0% selected the Continuation Sum at the Duration Open All level will have the Continuation Rates discounted at that rate on a monthly basis, e.g. 5% will use the monthly discount factor (1.05)^(-1/12). The Continuation measures at the Duration Open All level are the Present Value of payments (actual or expected, count or benefit), i.e. the disability annuity at inception.

The individual Continuation Rates (with the Duration Open in the Row or Column area) are independent of the Interest rate and are always undiscounted.