A table giving the probability that a claimant already off work stays off the following month, the basis for reserving disability annuities in payment.
Reserving a death benefit calls for a mortality table; reserving a disability annuity already in payment calls for something else entirely, namely the probability that a claimant already off work is still off next month. That is what continuance tables provide, crossing age at onset with duration since onset, two dimensions that are indispensable because exit from disability is fast in the first weeks and then collapses: past two years off work the chance of returning becomes small and the claim behaves like a long annuity. Three tables run in sequence in practice, continuance in temporary disability, transition from temporary to permanent disability, and continuance in permanent disability until retirement age. They underpin the calculation of outstanding claims reserves in protection business, a line often heavier than the unearned premium reserve. The problem solved is that a work absence is not a point event but a state whose duration is the financial variable, on which no mortality table says anything.
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 those of 1993. They describe, for each age at onset and each month of duration, the share of claimants still being paid, and an insurer wishing to depart from them must have its own table certified by an independent actuary.
tables BCAC, loi de maintien