Description: The objectives of this paper include an assessment of the basis of volatility of experience and financial results, considering the risks and uncertainties associated with long-term policies, especially LTCi. In so doing, it is observed that a properly determined provision for risk and uncertainty is needed in premiums and reserves. It then describes the approaches that can be taken to quantify such a provision in new and re-rated LTCi. The paper discusses possible mitigation approaches that have and should be taken, especially but not limited to the use of policy design features to enhance the alignment of interests of the LTC insurer and its policyholders. It also explores the relationship between historical and expected future risks and uncertainties specific to LTCi. It concludes by pointing out the pervasiveness of the uncertainties involved, the earlier underestimation of the uncertainties involved, although the actual degree of uncertainty may have decreased over time as relevant experience has been obtained. Effective management of LTCi demands incorporation of mitigation approaches in its product design and continuous monitoring of relevant experience.

Description: Presented at May 2000 Spring Meeting. This teaching session presents techniques and tools for valuing long-term-care insurance for mergers and acquisitions, drivers behind M&A activity in this market, the appraisal process. Specific situations are discussed.

Description: Discussion of LTC insurance product developments being spurred by recent demographic and regulatory trends, especially combination products such as LTC benefits with disability income, annuities, and life insurance. Several viable product styles are considered, along with the pros and cons of each.

Description: Panelists at this session of the SOA 2003 Vancouver Spring Meeting discuss the impact of underwriting and risk classification on Long Term Care pricing. The effect of HIPAA is also discussed.

Description: The panel demonstrates a technique that can help set confidence intervals regarding future rate increases used to satisfy the NAIC rate stabilization model. Specific topics include creating a stochastic model, deciding which variables are deterministic vs. stochastic, developing probability distributions for the stochastic variables, running the model and evaluating the reasonableness of results. From the Record of the Society of Actuaries, Volume 30, No. 1, Session 21

Description: Managing an in-force block of long-term-care insurance policies requires attention to maintain value to policyholders and persistency of healthy lives. In this session panelists discuss emerging experience in the US and UK, new product development, health risk, pricing, underwriting, claims management, experience monitoring and techniques to help viability & profitability. From the Record of the Society of Actuaries, Volume 28, No. 3, Session 82

Description: Read the August 2016 issue of Long-Term Care News published by the Long Term Care Section. Newsletters provide practical information for the working actuary, articles on trends that impact sections and news about section activities.