Flying Squirrel
01-18-2005, 05:34 PM
A disability product I am pricing has a paid up feature after 7 years without a claim. Our marketing department is contesting the price arguing that if an insured goes without a claim for 7 years his likelihood of filing a claim after that point is greatly diminished. I think it should go up some due to increased age.
Unfortunately we have little disability data and it isn't that clean anyway. Is there any published data that shows the correlation between incidence rate and policy duration that we support either of our hypotheses?
Unfortunately we have little disability data and it isn't that clean anyway. Is there any published data that shows the correlation between incidence rate and policy duration that we support either of our hypotheses?