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Old 08-12-2018, 03:53 PM
RonBu RonBu is offline
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Default Report on the Proposed 2016 Cancer Claim Cost Valuation Tables

On page 38, the report says "The all payment reserve patterns follow the each payment hospitalization closely but the peak reserves are lower for all payment versus each payment. This is consistent with the expectation that an each payment method will have higher future policy benefit reserves and an all payment method will have a higher claim reserve"

Could someone elaborate on the underlined part? How an each payment method will have higher future policy benefit reserves than an all payment method?

Thanks.
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Old 08-27-2018, 10:14 AM
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Pujols4Prez Pujols4Prez is offline
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Originally Posted by RonBu View Post
On page 38, the report says "The all payment reserve patterns follow the each payment hospitalization closely but the peak reserves are lower for all payment versus each payment. This is consistent with the expectation that an each payment method will have higher future policy benefit reserves and an all payment method will have a higher claim reserve"

Could someone elaborate on the underlined part? How an each payment method will have higher future policy benefit reserves than an all payment method?

Thanks.
Each payment has higher incidence so higher benefit reserves (applies to all active policies) but All payment has higher severity so a higher claim reserve (applies only to currently open claims).
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