AXIS Disability Module

AXIS Disability module offers flexible and detailed modeling of a wide variety of both Disability Income (DI) and Long Term Care (LTC) products and riders, including:

  • Simultaneous modeling of three independent causes (or situses, for LTC) with separate incidence and termination rates and benefit patterns
  • Termination rates can be aggregate rates or differentiated by recovery vs. disabled life mortality
  • Projected recoveries can rejoin the active life cohort to be exposed to further claim risk
  • Policies that exhaust the benefit maximum can either return to active or terminate as expiries
  • Monthly termination, recovery and continuance assumptions can be applied for up to 120 years
  • Direct and multiple seriatim reinsurance cessions are modeled simultaneously

The AXIS Disability module contains a comprehensive collection of features for modeling disability insurance policies paying lump sum or income replacement benefits including:

  • COLA
    • On both active and disabled lives
    • Caps and floors
    • Adjustment timing at policy, claim or calendar month anniversary
  • Waiver of Premium
    • By increasing benefits with no change to compensation
    • By reducing premiums with changes to all premium related Expense
    • Separate modeling by cause of disablement
  • Integration of benefits with other income
  • Return of premium features
  • Multiple reinsurance treaties modeled simultaneously
  • Modeling policy riders with base policy
  • Multiple decrement assumptions
  • Policyholder behavior modeling
  • Active and disabled lives can be modeled simultaneously
  • For active lives, explicit modeling of both the incidence of disability with a defined elimination periods and the payment of benefits to disabled lives subject to defined rates of termination, recovery and disabled life death

The AXIS Disability module also includes other features designed to model Long Term Care Insurance, Critical Illness Insurance, Cancer Insurance and many others, with:

  • Total benefit paid cap
  • Flexible lump sum payments
  • Death benefit while disabled

Premiums can be defined by predefined tables, supporting tiered or banded rates, calculated from a combination of base tables with up to ten adjustment factors, or from first principles using basic actuarial assumptions. Calculated tables can be iteratively adjusted by powerful solve routines to meet profit targets or other financial constraints.

Financial results can be framed using many different reserve methods, including comprehensive support for the calculation of the current and projected policy liabilities under IFRS 17 and US GAAP LDTI. In addition multiple other methods are supported, both old and new, US and International, including:

  • Active Life Reserves
    • US GAAP (SFAS60, SFAS97)
    • 1 and 2 Year Preliminary Term
    • Principles-Based Valuation (US)
    • Policy Premium Method (PPM)
    • Unearned Premium
  • Disabled Life Reserves
    • A Percentage of the Present Value of Benefits
    • A Percentage of the Monthly Income

Reserves can be calculated on the fly from first principles and up to 6 reserve bases can be run simultaneously.. Required capital adjustments can be based on RBC, LICAT or Solvency II, and on a company's internal capital standards, with up to three of these calculated simultaneously.

Uses of the AXIS Disability module include the following for Health and Disability related products:

  • Pricing, design and profitability analysis
  • Valuation
  • Financial statement projections
  • Statistics on projected active and disabled lives inforce
  • Cashflow projection and testing
  • Surplus adequacy testing
  • Required surplus
  • Embedded value and appraisal values
  • Asset liability management
  • Stochastic analysis
  • Margin analysis
  • NAIC financials
  • US GAAP financials