View Full Version : Tabular table vs. Tabular method
10-16-2008, 06:09 PM
I saw tabular method and tabular tables a few times somewhere (probably in the disability part). I do not quite understand. Is it kind of benchmark tables? Can anybody elaborate on the tabular related thing?
10-17-2008, 11:36 AM
One of the most common uses of tables as it relates to this exam is the 1985 CIDA tables, which are used for disability income pricing and reserving. This is discussed starting on page 124 of the Individual Health Insurance book, under the header of "Fundamental Pricing - Tabular Method".
These 85CIDA tables are used in various ways. They can be used in setting reserves (CSP exam topic), setting premiums (DP exam), and even benchmarking a company's results.
For DP, I would focus most on the premium setting usage, as described in the text I referenced above. In summary, this method is simply using these tables (or other tables - perhaps from internal studies) as the basis for claim incidence and severity assumptions. These assumptions are then combined with lapse and interest rate assumptions to come up with the net premium (claim cost) to be used in pricing.
The pricing of long term care would fall under this method as well, but with a different set of tables used as the basis for claim cost assumptions.
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