Combination products straddle life insurance and health insurance regulations, including guidance on holding reserves. Insurers struggle to interpret VM-20 as it applies to life insurance products with Long-Term Care (LTC) benefit riders. How should the actuary interpret the variety of reserving guidance for combination (aka hybrid) life and LTC products? This trial will discuss setting margins, the selection of assumptions and many other controversial combo product topics. In this session, you will understand the material from the workgroup that wrote the American Academy of Actuaries Combination Product Valuation Practice.
Attend this session and you’ll:
• Describe the ambiguity in reserving for combination life and LTC products.• Communicate the considerations in selecting combo product margins.• Articulate the natural hedging in the volatility of earnings that a combination product provides.
Track: Cultivating Future Opportunities