Attachment 5C - Incurred Paid1.1.2022 through 3.31.2026.pdf

This is a disability insurance experience report for Palm Beach County Board of County Commissioners covering the period from January 1, 2022 through March 31, 2026 under Contract Number 760741. The report provides detailed incurred claims data on a paid basis for both Short Term Disability (STD) and Long Term Disability (LTD) insurance coverage. For STD coverage, the contract served between 1,523 and 1,783 lives across the five-year period, with earned premiums totaling $1,986,931 and incurred claims of $1,457,488, resulting in an overall loss ratio of 73%. For LTD coverage, the contract served between 4,247 and 4,467 lives, with earned premiums totaling $2,478,298 and incurred claims of $2,227,793, resulting in an overall loss ratio of 90%.

The LTD coverage demonstrates significant claims activity and reserve adjustments throughout the contract period. Paid LTD claims totaled $1,145,719, with additional reserve changes of $810,284 and IBNR reserves of $264,786, indicating substantial outstanding liabilities. Loss ratios for LTD varied considerably year to year, ranging from 56% in 2024 to 163% in the partial 2026 period, reflecting the unpredictable nature of long-term disability claims. The STD experience was more stable, with loss ratios ranging from 59% to 86%. Combined STD and LTD earned premiums across the entire period totaled $4,465,229 against total incurred claims of $3,685,281, demonstrating the overall cost structure of the disability insurance program for Palm Beach County.