2000-2011 Long Term Care Experience Basic Table Development

The Society of Actuaries has released the results of an initiative to produce Long Term Care basic experience rate tables for claim incidence, claim termination, and claim utilization. Three multiplicative models have been developed, one for each of three tables that will calculate rates that vary by a number of product and policyholder attributes. The resulting rates are a product of a base rates and factors for each of the product and policy holder characteristics that were determined to be significant drivers. A report describing the development, usage and limitations of the models and rates has been made available to accompany the models.

The basic tables were developed from experience data between January 1, 2000 and December 31, 2011 collected from 22 insurers. The production of the basic tables is the third and final phase of an overall initiative to: 1) collect and cleanse long term care data; 2) produce a set of aggregated databases of LTC experience; and 3) produce experience basic tables.

The Society of Actuaries’ Long Term Care Committee oversaw the work of all three phases. Towers Watson was retained by the SOA to complete the creation of the experience databases and tables. MIB and LIMRA were retained by the SOA in the initial phase to collect and cleanse the data.

Links to the models and report can be found under ‘Related Links’. A link to the aggregated databases produced in phase two is also included.