Understanding the Volatility of Experience and Pricing Assumptions in Long-Term Care Insurance

Research Projects – Long-Term Care

The Society of Actuaries (SOA) Long-Term Care Insurance Section is pleased to make available two reports aimed at advancing knowledge in Long-Term Care pricing. The first report, authored by Actuarial Resources Corporation of Kansas, illustrates how the risks of Long-Term Care Insurance can be understood through modeling the liabilities using a Monte Carlo simulation approach.

The second report, authored by PricewaterhouseCoopers, includes an assessment of the basis of volatility of experience and financial results, considering the risks and uncertainties associated with long-term policies, especially LTCi. The paper also discusses possible mitigation approaches to enhance the alignment of interests of the LTC insurer and its policyholders.

The reports can be accessed by clicking the links to the right.

If you have comments or questions, please contact Steve Siegel at ssiegel@soa.org.

The SOA would like to thank the following Project Oversight Group members:

  • Steve Schoonveld, Chair
  • James Berger
  • Sivakumar Desai
  • Robert Hanes
  • David Hippen
  • Perry Kupferman
  • Alex Silva
  • Barbara Scott, SOA Research Administrator
  • Steven Siegel, SOA Research Actuary