Release 8.7 (re)introduces claim transition studies. These are used for long term care analysis allowing claims to be analyzed by by claim cause, duration since loss date and duration since start of the claim state. This is fully integrated with the claim termination study.
This release also incorporates substandard ratings in the policy termination study expresses as factors or flat extras, and adds the Policy Year study method to the claim termination analysis.
Claim Transition Study
A new Claim Transition application is available allowing state-transition studies using the latest claim and claim state records. It is fully integrated and consistent with the Claim Termination study.
This is a full multi-state study allowing a claim to be studied not only by claim cause and duration since loss date, but also by claim state and duration since the start of the claim state.
The full history of claim state transitions are loaded on an incurred basis, identifying the start date and age, and claim state type. The End dates and closed reasons are calculated from the following states or from the claim record.
A series of claim states would start at the claim benefit start date with the final claim state starting prior to the claim closed date. Claim State duration is calculated from the start date.
The claim states are fully reloaded on processing with previous records deleted.
Expected rates are specified by Claim State Type and Claim State Sequence in addition to claim cause, gender, occ class, waiting period, claim state age and claim state mth/year. The expected rates are structured similar to the claim termination rates: monthly for 2 years and annual thereafter.
The Claim transition study identifies the ordered sequence of claim states, claim state types and the full claim state path. Claim state Type can also be identified and analyzed on a reported basis in the Claim Movements.
Substandard Ratings – Policy Termination Application
Policy Termination now allows substandard ratings (or discounts) to be applied directly to the expected rates. Rating can be specified as factors (e.g. 1.5) or flat extras (e.g. 0.005) for a policy year range.
The ratings are applied as the multiplier to the base termination rates plus the flat extra and flow directly into the expected events and associated rates. The standard (i.e. base) expected event measures are still available.
Policy Year Study Method – Policy Termination Application
Policy Termination now allows a policy year study method using the Policy Anniversary Year dimension which defines the year at the policy anniversary over the whole policy year. Year bands are available to exclude the partial policy years in the initial and final study year.
Performance and Design
Expected Rates Process Restructure – Policy Termination Only
Policy Termination Expected Rates have been redesigned for performance, flexibility and control. The fully expanded rate tables are available in the Source database and can be directly loaded. These tables will be directly utilized when the policy termination study is processed, without being loaded into the data warehouse.
New or changed Expected rates tables can be individually processed or old tables dropped without reprocessing existing tables using the Used and Reload flags on the table Exp.srcPolTermRateTable.
The current compact rate tables are still available as “lu” tables and the rate expansion process is available as Source ETL widgets should clients wish to continue to use this functionality.