2017
DOI: 10.3390/risks5010017
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The Impact of Changes to the Unemployment Rate on Australian Disability Income Insurance Claim Incidence

Abstract: Abstract:We explore the extent to which claim incidence in Disability Income Insurance (DII) is affected by changes in the unemployment rate in Australia. Using data from 1986 to 2001, we fit a hurdle model to explore the presence and magnitude of the effect of changes in unemployment rate on the incidence of DII claims, controlling for policy holder characteristics and seasonality. We find a clear positive association between unemployment and claim incidence, and we explore this further by gender, age, deferm… Show more

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Cited by 5 publications
(2 citation statements)
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“…A hurdle model was applied because (1) there were no truck accidents (i.e., outcomes) in a large proportion of the grids resulting in an outcome value of zero, and (2) the zero outcomes have exactly one source (a zero indicates that there were no trucks accidents) [ 21 , 22 ]. The hurdle model employed a logistic regression model for the incidence process, and a zero-truncated negative binomial regression model (with log link) for the prevalence process.…”
Section: Methodsmentioning
confidence: 99%
“…A hurdle model was applied because (1) there were no truck accidents (i.e., outcomes) in a large proportion of the grids resulting in an outcome value of zero, and (2) the zero outcomes have exactly one source (a zero indicates that there were no trucks accidents) [ 21 , 22 ]. The hurdle model employed a logistic regression model for the incidence process, and a zero-truncated negative binomial regression model (with log link) for the prevalence process.…”
Section: Methodsmentioning
confidence: 99%
“…The forecasting models and their extensions have been applied in the real world to overcome the complexity and uncertainty [36][37][38][39]. Grey theory is primarily concerned with ambiguous system models in which there is inadequate information to perform system link analysis, model creation, predictions, and judgments.…”
Section: Literature Reviewmentioning
confidence: 99%