AXIS Disability Module

AXIS Disability Module offers flexible and detailed modeling of both DI and LTC risks:

  • Simultaneous modeling of three independent causes (or situses, for LTC) with separate incidence and termination rates and benefit patterns
  • Termination rates can be aggregate rates or differentiated by recovery vs. disabled life mortality
  • Projected recoveries can rejoin the active life cohort to be exposed to further claim risk
  • Policies that exhaust the benefit maximum can either return to active or terminate as expiries
  • Monthly termination, recovery and continuance assumptions can be applied for up to 120 years
  • Direct and multiple seriatim reinsurance cessions modeled simultaneously

Uses of the AXIS Disability Module include the following for Health and Disability related products:

  • Pricing and design
  • Valuation
  • Financial Statements
  • Statistics on Active and Disabled Lives Inforce
  • Cashflow projection and testing
  • Surplus adequacy testing
  • Required Surplus
  • Embedded Value and appraisal
  • Asset liability management
  • Stochastic analysis
  • Margin analysis
  • NAIC Financials
  • US GAAP Financials

The AXIS Disability Module contains a comprehensive collection of features for modeling disability insurance policies paying lump sum or income replacement benefits including:

  • COLA
    • On both active and disabled lives
    • Caps and floors
    • At policy, claim or calendar month anniversary
  • Waiver of Premium
    • By Increasing Benefits with no change to Compensation
    • By Reducing Premiums with changes to all Premium related Expense
    • By cause of disablement
  • Integration of Benefits with Other Income
  • Return of Premium
  • Multiple reinsurance treaties
  • Modeling policy riders with base policy
  • Multiple decrement assumptions
  • Policyholder behaviour modeling
  • Active and Disabled lives can be modeled simultaneously
  • Explicit modeling of both the incidence of disability at defined elimination periods and the payment of benefits to disabled lives subject to defined rates of termination, recovery and disabled life death

The AXIS Disability Module also includes other features designed to model Long Term Care Insurance, Critical Illness Insurance, Cancer Insurance and many others, with:

  • Total Benefit Paid Cap
  • Flexible Lump Sum
  • Death Benefit while Disabled

Additionally, the AXIS Disability Module supports many reserves methods, including:

  • Active Life Reserves
    • US GAAP (SFAS60, SFAS97)
    • 1 and 2 Year Preliminary Term
    • Principles-Based Valuation (US)
    • Policy Premium Method (PPM)
    • Unearned Premium
  • Disabled Life Reserves
    • A Percentage of the Present Value of Benefits
    • A Percentage of the Monthly Income

Up to six reserve bases may be run simultaneously.