Loss of earning capacity in Denmark -- an actuarial perspective

Paper: arXiv 2501.11578

Authors: C. Furrer, O. L. Sandqvist

Abstract

We describe challenges and opportunities related to risk assessment and mitigation for loss of earning capacity insurance with a special focus on Denmark. The presence of public benefits, claim settlement processes, and prevention initiatives introduces significant intricacy to the risk landscape. Accommodating this requires the development of innovative approaches from researchers and practitioners alike. Actuaries are uniquely positioned to lead the way, leveraging their domain knowledge and mathematical-statistical expertise to develop equitable, data-driven solutions that mitigate risk and enhance societal well-being.

Complexity vs Empirical Score

• Math Complexity: 3.0/10
• Empirical Rigor: 3.5/10
• Quadrant: Philosophers — conceptual discussion, limited math and data

Why this score: This paper presents a conceptual and domain-specific overview of loss of earning capacity insurance in the Danish welfare model. It offers valuable practical perspectives and qualitative case studies, but lacks rigorous quantitative modeling, mathematical derivations, or empirical backtesting in the provided text.

Research Flowchart

  flowchart TD
    A["Research Goal: Assess & Mitigate Loss of Earning Capacity (LEC) Insurance Risk in Denmark"] --> B["Inputs: Public Benefits Data, Claim Settlement Flows & Prevention Initiatives"]
    B --> C["Methodology: Integrate Actuarial Modeling with Mathematical-Statistical Frameworks"]
    C --> D["Computational Process: Model Complex Risk Landscapes & Settlement Interactions"]
    D --> E["Outcomes: Equitable Data-Driven Solutions & Enhanced Risk Mitigation"]