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Research

Research Studies–Proposal Requests

SOA LTC Section and ILTCI Conference Association Research Topics

 

1. Background

The Society of Actuaries' Long Term Care (LTC) Section Council and ILTCI Conference Association are dedicated to advancing knowledge in LTC and furthering the industry. In keeping with their desire to add to the LTC body of knowledge, the organizations are greatly interested in receiving proposals for research on the topics described in the Research Objective section (Section II.) of this document. The genesis of many of the topic ideas was from a solicitation of attendees at the Intercompany Long Term Care Insurance Conference held earlier this year. It is the intention of both organizations to formally initiate projects on two to four of the eight topics this year with the remaining topics to be possibly covered in subsequent years. A budget of $100,000 has been dedicated for research on the two to four topics selected this year. While respondents to this RFP should keep this budget in mind, they should not feel limited by it.

2. Research Objective

To advance knowledge in LTC, the SOA LTC Section Council and ILTCI Conference Association would like to receive proposals related to the following topics. Proposals are welcome on one or more of the topics. The description of each of the topics has been deliberately written briefly and primarily open-ended in order give potential proposers sufficient latitude in the development of proposals:

1. An analysis of the trend in the average intensity of ADL dependence/cognitive impairment of assisted living facility residents.
2. An investigation of the impact of pre-claim interventions/wellness programs on eventual claims. Do these programs make back their investment by reducing claim costs or do they induce more claims? This research topic could include information on what the prevalence is of individuals who are eligible for claims, but have not made a claim.
3. An assessment of how cognitive impairment improvements through innovative medicines and related treatment could affect LTC profitability, continuance, and incidence rates. This research topic could also include the impact of emerging claim delivery methods (e.g., robotics, smart homes) and medical breakthroughs on both cognitive and non–cognitive claims.
4. A study that models or develops experience transition rates between claim stages (e.g., nursing home, assisted living facility, home health) with the ultimate goal of improving management information.
5. Development of actual values for the wear–off of underwriting by age at issue to replace assumed values. The ultimate values would be based on actual data, rather than theoretical or model values.
6. Production of a model that projects savings to Medicaid from increased LTC policy sales. The model results may be used in discussions of the tax–treatment of LTC benefits depending on the magnitude of savings.
7. A quantification of the natural hedge between LTC and Life linked products including an assessment of (a) the size of the discount that may be offered through use of a hybrid life–annuity mortality table; (b) the benefit combination that maximizes the value of the hedge; and (c) the impact on capital requirements for a linked product.
8. A study of general morbidity and mortality trends (e.g., decreases over time) that can be demonstrated in an insured population.


3. Proposal

To facilitate the evaluation of proposals, the following information should be submitted:

1. Resumes of the researcher(s), including any graduate student(s) expected to participate, indicating how their background, education and experience bear on their qualifications to undertake the research. If more than one researcher is involved, a single individual should be designated as the lead researcher and primary contact. The person submitting the proposal must be authorized to speak on behalf of all the researchers as well as for the firm or institution on whose behalf the proposal is submitted.
2. An outline of the approach to be used, emphasizing issues that require special consideration. Details should be given regarding the techniques to be used, collateral material to be consulted, and possible limitations of the analysis.
3. Cost estimates for the research, including computer time, salaries, report preparation, research costs, etc. Such estimates can be in the form of hourly rates, but in such cases, time estimates should also be included. Any guarantees as to total cost should be given and will be considered in the evaluation of the proposal. While cost will be a factor in the evaluation of the proposal, it will not necessarily be the decisive factor.
4. A schedule for completion of the research, identifying key dates or time frames for research completion and report submissions.
5. Ideas regarding the form and distribution of the final report, both for immediate release and for permanent reference (e.g., submission to North American Actuarial Journal, SOA Monograph Series, CD ROM).
6. Other related factors that give evidence of a proposer's capabilities to perform in a superior fashion should be detailed.


4. Selection Process

The SOA LTC Section Council and ILTCI Conference Association are responsible for the selection of the proposals to be funded. Input from other knowledgeable individuals also may be sought, but the organizations will make the final decision. The SOA's Research Actuary will provide staff actuarial support. A POG will be appointed to oversee each project that is initiated.

5. Questions

Any questions regarding this RFP should be directed by fax; 847.273.8578, or e–mail to: Steven Siegel, SOA Research Actuary.

6. Notification of Intention to Submit Proposal

If you intend to submit a proposal, please send written notification by September 30, 2007 to Jeanne Nallon by e–mail or fax 847.273.8592.

7. Submission of Proposal

Please e–mail a copy of the proposal to: Jeanne Nallon.

Proposals must be received no later than October 15, 2007. It is anticipated that all researchers who have submitted proposals will be informed of the status of their proposal no later than November 15, 2007.

Note: Proposals are considered confidential and proprietary.

8. Conditions

The SOA LTC Section Council and ILTCI Conference Association reserve the right to not award a contract for these research topics. Reasons for not awarding a contract could include, but are not limited to, a lack of acceptable proposals or a finding that insufficient funds are available to proceed. The SOA also reserves the right to redirect the projects as is deemed advisable. The SOA intends to copyright and publish the results of this research. The research will be considered work–for–hire and all rights thereto belong to SOA. However, appropriate credit will be given to the researcher(s).