Quantification of the Natural Hedge Characteristics of Combination Life or Annuity Products Linked to Long-Term Care Insurance

Research Projects – Long–Term Care


The Society of Actuaries' Long-Term Care Insurance Section and the ILTCI Conference Association are pleased to make available a research report highlighting the characteristics of combination plans that serve to reduce the risks to insurers issuing these products. 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. The report was authored by Linda Chow, Carl Friedrich, and Dawn Helwig of Milliman, Inc.

The report can be accessed by clicking on the link to the right.

If you have any questions or comments regarding the report, please contact Steve Siegel, Research Actuary at ssiegel@soa.org.

The SOA's Long-Term Care Insurance Section and the ILTCI Conference Association would like to thank the following members of the project oversight group for their review and support of the project:

  • David Benz
  • Vince Bodnar
  • Mark Costello
  • Bob Darnell
  • Jim Glickman
  • Roger Loomis
  • Mark Whitford
  • Steve Siegel, SOA Research Actuary
  • Barbara Scott, SOA Research Administrator