Description: The objectives of this paper include an assessment of the basis of volatility of experience and financial results, considering the risks and uncertainties associated with long-term policies, especially LTCi. In so doing, it is observed that a properly determined provision for risk and uncertainty is needed in premiums and reserves. It then describes the approaches that can be taken to quantify such a provision in new and re-rated LTCi. The paper discusses possible mitigation approaches that have and should be taken, especially but not limited to the use of policy design features to enhance the alignment of interests of the LTC insurer and its policyholders. It also explores the relationship between historical and expected future risks and uncertainties specific to LTCi. It concludes by pointing out the pervasiveness of the uncertainties involved, the earlier underestimation of the uncertainties involved, although the actual degree of uncertainty may have decreased over time as relevant experience has been obtained. Effective management of LTCi demands incorporation of mitigation approaches in its product design and continuous monitoring of relevant experience.

Description: This is a research report that highlights the characteristics of combination plans that serve to reduce the risks to insurers issuing life or annuity products linked to long-term care insurance. Observations are provided to assist in the understanding of the factors that explain the profit change sensitivity results and the natural hedging against major risks that inherently is present within the linked products.

Description: In this paper several probability models for the random amounts of needed long-term care are explained, and one model is used to provide an alternate premium calculation method for certain long-term care coverages. From Actuarial Research Clearing House 1990, VOL. 2.

Description: As carriers have learned over the last two decades, Long-Term Care insurance (LTCi) is a risky business. The intent of this paper is to illustrate how these risks can be better understood through modeling the liabilities using a Monte Carlo simulation approach.

Description: Research report describing an analysis of experience transition rates between Long Term Care insurance claim settings over the course of a claim. Examples of such transitions are from an assisted care facility to home health care or from home health care to a nursing home.

Description: The Society of Actuaries Research Institute’s Aging and Retirement Strategic Research Program is pleased to make available a report that explores stakeholder views in Minnesota on the efficacy of a public catastrophic long-term care insurance program at the state level.

Description: Report on the SOA's 1st Annual LTC Operations and Technology Benchmark Survey. Its goals were to provide data to support the development of time and cost benchmarks for LTC operations, identify the most pressing operations and technology issues, and gain insights into the technologies that are being used to administer Long Term Care business.

Description: Long Term Care Think Tank: Exploring the possibilities for helping the American public manage the financial burden of long term care. This report shares the output of a 1.5 day structured brainstorming session involving some of the LTC industry’s preeminent thought leaders. Ideas presented here are intended to help transform the delivery, accessibility, and financing of long term care.

Description: Proposes setting premiums such that inflation and age could change the premium over time, rather than prefunding. The value may be to change the approach to pricing LTC and improve the risk.

Description: The implications of the new long-term care law for individuals, employers, insurers and providers, and the federal government.