Disability continuance table
A table giving the probability that a claimant already off work stays off the following month, the basis for reserving disability annuities in payment.
Order of December 24, 2010: the tables of the Bureau commun d'assurances collectives, the BCAC, replace the 1993 tables, to be applied by December 31, 2013 at the latest. For each age at onset and each month of duration, they give the share of claimants still receiving benefits. Reserving for a death benefit takes a mortality table. Reserving for a disability annuity in payment takes the probability that someone already off work will still be off next month. Both dimensions matter, because recoveries are very frequent in the first weeks and then drop off sharply. Beyond two years off work, return to work becomes rare and the claim behaves like a long annuity. In practice three tables run in sequence: continuance in incapacity, transition to long-term disability, then continuance in disability until retirement. They underpin claims reserves in group protection, which are often heavier than the premium reserve. In a disability claim, the financial variable is duration, and no mortality table tells you anything about it.
The tables of France's Bureau commun d'assurances collectives, approved by the order of December 24, 2010 and applicable no later than December 31, 2013, replaced the 1993 tables. For each age at onset and each month of duration, they give the share of claimants still being paid. An insurer that wants to depart from them must have its own table certified by an independent actuary.
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