The Canadian Institute of Actuaries (CIA) has published its most recent annual research report, Canadian Individual Life Experience for Policy Year 2020-2021.
In it, fellow of the CIA, Bob Howard examines intercompany mortality experience for Canadian individual life insurance policies, covering the one-year period beginning with the policy anniversary in 2020, on an age-nearest-birthday basis for data submitted by seven companies.
The CIA says the report focuses on individual life insurance policies and riders issued in Canada that require full underwriting, while other individual life insurance segments are also analyzed.
“The standard segment now excludes experience of renewable term policies after the first renewal, both for the current policy year and any prior policy years referenced. Renewal experience is still reported separately and is still available in the databases,” they write.
They add that the previous 11 years have also been revised due to the discovery of some misclassifications between base policy and riders. “Some policy counts have changed but the amounts are unchanged. More information on COVID-19 deaths is (also) included in this report.”
They continue, reporting an overall increase in A/E ratios (actual/expected ratios) for this policy year, compared to previous years. “This is a notable exception to the overall downward trend in A/E ratios over the last several years.”
