Company Incidence Experience as a Percent of the 2013 IDI Valuation Table Company 1990-94 1995-99 2000-03 2004-06 Total 1 84.0% 79.8% 76.6% 85.6% 108.4% 2 74.5% 76.5% 91.4% 86.0% 100.3% 3 73.4% 71.0% 84.7% 101.8% 4 94.0% 77.8% 96.5% 110.8% 100.7% 5 131.2% 105.7% 121.1% 6 87.6% 118.4% 104.4% 109.4% 105.1% 7 99.5% 99.4% 99.4% 8 91.1% 82.2% 66.4% 99.1% 144.3% 9 61.3% 40.5% 51.0% 10 87.1% 77.8% 87.0% 74.5% 81.1% 11 88.1% 83.9% 73.8% 86.3% 104.4% 12 77.8% 68.6% 73.3% Grand Total 110.6% 98.6% 92.8% 77.5% 95.1% Claim Termination Rates A similar approach was used to develop claim termination rate margins as was used to develop the claim incidence margin. However, the analysis is somewhat more complex because adequacy needs to be evaluated by company within specific claim duration groupings. Claim termination experience by company is compared to the 2013 IDI Base Table claim termination rates below. In this context, the numerator (A) represents company experienced claim termination rates and the denominator (E) represents 2013 IDI Base Table claim termination rates. In bold italics is the “margin target,” which is the ratio that needs to be greater than 100 percent for the 2013 IDI Valuation Table to meet the sufficiency definition described above. The margin table underneath the experience table indicates the margins needed by duration segment so that each segment exhibits sufficiency.
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