Description: Arun Paul, FSA MAAA Pricing Actuary for Canada Life Re-Insurance discusses morbidity as it relates to Long-Term Care Insurance. Arun is the current President of SANA The South Asian Network of Actuaries and has over a decade worth of actuarial experience. He provides insights into how morbidity is defined in Long-Term Care insurance and explains the process of filing and processing claims in this engaging discussion with Jon Forster, ASA MAAA Professional Development Learning and Content Design Director at the Society of Actuaries. They also touch upon key factors affecting Long-Term Care insurance costs, such as care duration, benefits administration, and the impact of geographic location and prior claim history on claim costs. Contributors: ARun Paul FSA MAAA, Julite Spector, FSA, MAAA Matt Morton FSA MAAA, RAchael Marsiglio FSA MAAA , Jon Forster ASA MAAA

Description: In this discussion Arun Paul discusses the critical assumption of persistency in Long-Term Care insurance. This is a key driver in LTC pricing and reserve settling. Persistency is categorized into active mortality (for non-disabled policyholders), disabled mortality (for those on claim), and voluntary lapse rates. The conversation explores how active mortality is influenced by aging policyholders and the evolving demographics. It also delves into the patterns of disabled mortality, which tend to have an initial spike in the early claim period. Finally, Arun, discusses the impact of low lapse rates on LTC products, leading to increased costs for carriers and the introduction of options like rate increases and benefit buy-downs for policyholders. Contributors: Arun Paul, FSA MAAA, Juliet Spector FSA MAAA, Jeremy Hamilton FSA MAAA, Matt Morton, FSA MAAA , Jon Forster ASA MAAA