Oliver Lunding Sandqvist releases v3 of the multi-state methodology paper on disability insurance reserves
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On October 27, 2026, Oliver Lunding Sandqvist released v3 of the multi-state methodology paper on disability insurance reserves on arXiv, proposing a new individual reserve accrual model that can describe claim evolution in real time, to address the issues of reporting delays and adjudication processes in disability insurance claims. When the available information and the underlying biometric multi-state process satisfy appropriate independence assumptions, the model can be calculated through a natural correction form of classical reserves. The model parameter estimation adopts the method proposed by Buchardt et al. in 2025, which has been verified with real data and compared with traditional accrual methods.
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- arXiv q-finA Multi-State Approach to Disability Insurance Reserve Calculation Accounting for Information Delays
Addressing reporting delays and adjudication processes in disability insurance claims, this study proposes a new individual reserve model that can describe claim evolution in real time. Under the assumption of independence between the information process and the underlying biometric multi-state process, the model can be computed through a natural correction of classical reserves. Model parameters are estimated using the method proposed by Buchardt et al. in 2025, and the model has been validated on real data and compared with traditional reserving methods.
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