How does the Claim Analytics LTD claim reserving methodology differ from others?
Current reserving methodologies determine termination rates using simple statistics and only a limited set of claimant characteristics. The Claim Analytic’s approach to calculating LTD claim reserves is to determine claimant-specific termination rates. The Claim Analytics approach is to apply advanced predictive modeling techniques to determine very precise, claimant-specific, termination rates based on all the key drivers of termination, such as: age, gender, elimination period, primary and secondary diagnoses (not just diagnostic category), occupation, industry, income, benefit level, change in definition date, geographic region and number of previous claims by the same claimant.
