What is the AXIS MultiState Module?
A liability module in AXIS that models products where policyholders can occupy and transition between multiple states over time.
What types of products can be modeled in the MultiState Module?
Products with multiple benefit types such as critical illness, disability income, life insurance, hospitalization, and survivor annuities.
What is the purpose of the MultiState Module?
To model insurance products where benefits depend on transitions between health or life states, capturing interdependent risks and payouts.
What are examples of states that can be modeled?
States like healthy, disabled, critically ill, hospitalized, or deceased can be defined, with transitions between them driving cashflows.
How does the MultiState Module handle transitions?
Transitions between states are driven by probabilities or rates (e.g., incidence, recovery, mortality), defined by user assumptions.
What is a ‘state’ in the context of the AXIS MultiState Module?
A distinct condition or status of a policyholder, such as active, disabled, or dead, that determines which benefits are payable.
What are interdependent benefits?
Benefits that depend on the occurrence of multiple events or states, such as disability income ending when a death benefit begins.
Why is the MultiState Module important for actuaries?
It allows actuaries to accurately model complex products with multiple benefits and dependencies, improving pricing and valuation accuracy.
What are some examples of products that use MultiState modeling?
Critical illness plans with multiple payouts, combined disability and life products, and long-term care policies with transition-based benefits.
How does the MultiState Module improve product modeling?
By allowing simultaneous modeling of multiple risks and benefit triggers, capturing the true interactions between different insurance coverages.
