Posted on by Arthur da Silva

Life Library Update 2024.12 Disability Income overhaul and cleanup, new Slope Academy video: Intro to Life Library Design

Individual Disability Income product overhaul

A number of changes were made to the IDI product, with the largest being the separation of Best Estimate, US STAT, and US GAAP calculations from each being contained in separate array values for each basis into separate sets of variables for each basis. This provides the ability to exclude a reporting basis using variable tags if the user does not want to run US STAT and/or US GAAP.

In addition, the model has been cleaned up substantially, including a refresh of the disability incidence and termination rate tables within the model.

IDI Changes

  • Moved array variables based on the Accounting Basis array to separate sets of variables for each basis.
  • Modified gross premium rates to set rates to 0 after time of premium cessation.
  • Added a default of $0 premium starting from Age 0 (lower bound) to table Library Premiums to Age 65 (previously named Flat_To65_EP90) in table structure IDI Premium Rates structure to prevent the table lookups from producing errors at younger attained ages.
  • Moved to a separate variable the reference to the A&H Open Claim Reserve within variable A&H Claim Reserve.
  • Removed unused Premium Type column from the library example Model Point File
  • Deleted unused Premium field from Model Point File definition.
  • The Model Point field for Initial Premium is now optional in the definition since this is only needed for Single Premium policies.
  • Renamed Claim Age variable to Age Attained on Claim to clarify that it represents attained age while on claim rather than age at claim incidence.
  • Renamed the Time of Claim Term variable to Time of Claim Expiry to clarify that it represents the time of expiry (i.e. end of benefit period) rather than a term length.
  • Renamed Incidence Tables table structure to IDI Incidence Tables for clarity.
  • Renamed table structure Inc and Term Table Lookup to Library Incidence and Termination Table Lookup for clarity.
  • Renamed misleading data table name from Flat_To65_EP90 to Library Premiums to Age 65 within table structure IDI Premium Rates.

IDI Fixes

  • All disability incidence and termination rate tables have been updated to correct various issues in the tables’ values.
  • Revised the Library Incidence and Termination Table Lookup table (previously named Inc and Term Table Lookup) to now contain all occupation classes.
  • Fixed inconsistencies in the sample IDI Plan Code Table.
  • Added a condition to several variables to not inappropriately calculate (by setting to zero instead) if irrelevant to the disability status at the projection start date. For example, if a life is Disabled at projection start, then variables specific to Active lives are now set to zero.
  • Modified variables relating to policies in force such that they only calculate for lives that are active at the projection start date, which is consistent with how these variables are currently used in the rest of the IDI product.
  • Fixed issues relating to Unearned Premium Reserve calculations for single premium policies. Corrected product variable US STAT Active Life Reserve – Unearned Premium per Policy and the example plan code table to calculate zero Unearned Premium Reserves for single premium business, which is now always assumed to map to Credit in the US STAT Line of Business column in the example Plan Code table.
  • Fixed an issue where US STAT and GAAP unearned premium reserves were trying to calculate a value after premium payment period ended.
  • Added missing monthly benefit to the library example Model Point File’s records #3 and #4.
  • Turned off Always Calculate switches on a number of variables which were causing unintended calculations in certain circumstances.
  • Added Maximum Coverage Age boundary to the incidence rate variables to prevent them from accidentally calculating incidence rates at unintended ages.
  • Modified the table within structure US STAT Mortality – Individual Disability Income (IDI) to work for issue years 2021 and beyond. Also, collapsed the table structure to use a Range Lower Bound match type rather than Exact Match.
  • Added Premiums Per Year alias to the Premium Mode model point field definition to properly capture the column in the sample Model Point File
  • Corrected variable Reinsurance US GAAP PV YRT Benefits which previously referenced US STAT mortality rather than US GAAP.
  • Corrected variable Maximum Coverage Age (renamed from Maximum Incidence Age) to reference column Coverage to Age from the Plan Code table rather than Maximum Age. This change was done to be more consistent with the Life Library’s design in that Maximum Age refers to the maximum age for model point processing (including the run off of all disability claims) while Coverage to Age refers to the last age of disability incidence. The variable rename clarifies the coverage period also specifies the last period of active life mortality in addition to disability incidence.

Other Library Changes

  • Renamed array value AG35 – CARVM-MVRM to AG35-MVRM in array Indexed Annuity US STAT Valuation Method to be consistent with other AG35 methodologies. 
  • Added new Policy Year column to the Policy Load table structure. As a result, UL variables have been modified to account for new structure.
  • Renamed table structure A&H Incidence Tables to CI Incidence Tables. References in the CI product variables will point to this renamed table.

Other Library Fixes

  • Added a Zero CSV plan code data table for Term Life so that Term Life runs that exclude US Stat variables do not produce errors.
  • Best Estimate Cash Flows templates in the Life Onboarding model references the Zero CSV plan code data table (from previous bullet) so that it does not produce an error when being run.

New Slope Academy video covering Intro to Life Library Design and Concepts

We have published a new Slope Academy video (~25 mins split into 4 parts) for new users of the Slope Life Library. This video covers the initial set up of the library model and a quick overview of the basics of the SLOPE platform in the context of the library model. It is useful for new users of SLOPE or those that are new to using the Slope Life Library and want a quick orientation of general design aspects of the library model. This video also provides ideas to reuse for user-created custom models built within the platform.

Coming Soon

  • Pension Risk Transfer library model
  • Revamped annuity product in Life Library model combining Fixed and Indexed Annuity products with enhanced deposit-based modeling
  • US STAT Updates
  • Bermuda CP2 Updates