Description: The hybrid Life/LTC and Life / Chronic Illness market is an exciting market that is in its relative infancy. There are many new companies that have just entered, or are considering entering, the hybrid market. Hybrid sales have grown tremendously over the past decade and are still going strong, with annual premium revenue estimated to be above $4 billion per year. The young issue ages for these products, relative to when LTC benefits are paid, means that the claim experience in the industry for these products is still very limited. Additionally, there are many moving parts to these products that present correlated risks and assumptions. The new entrants to the market, limited experience, and the interactions of risks create an environment equipped for vibrant discussions on the product structure, risks, assumptions, and considerations for modeling these hybrid products. The presenters would provide insight into each of these topics through a conceptual discussion, supported by observational data from case study projections and sensitivities.

Description: In this session, morbidity and life expectancy trends are discussed. In addition, a case study in R on how to model the uncertainty associated with incidence of disability, disabled and active deaths and other terminations is presented.

Description: The last decade or more has proven that premium rate increases are necessary to maintain the integrity of most blocks of LTCi policies. Along with those rate increases, carriers have offered and regulators have approved an evolving menu of rate increase mitigation options for policyholders that do not wish to pay the increased rate. Recently, carriers and regulators have become more and more innovative in the rate increase mitigation options that they have presented to regulators. This article will discuss both the common and creative options that carriers are offering their insureds in the event of rate increases, including policy buys out, adjustments to coverage levels, and enhanced non-forfeiture options.

Description: Session 5 of the 1990 Valuation Actuary Symposium is an open forum on the long term health insurance risks. Also discussed is major medical and disability insurances.

Description: Recommendation to measure the risk for the components of combination Life/LTC products.

Description: This article outlines industry practice and consideration for pricing acceleration-only riders to life insurance policies.

Description: Report on the activities of the Academy’s health practice council and its work groups.

Description: A summary of the background, features, and potential pitfalls of the new LTC Experience Reporting Forms, which will soon be required. The new forms are designed to better inform investors, competitors, and regulators about financial performance, reserve adequacy, and relationship between assumptions and experience. Companies are advised to start preparing for the change to the new forms.

Description: Company Considerations and Regulatory Perspective for Offering Reduced Benefit Options

Description: A wrap-up of the year’s activities, including supporting the educational needs of membership, focusing on sponsoring research, and developing community.