Utilizing LTC projection methods

Estimating future claims usually entails using historical data as a starting point to develop an assumption about the future. Developing financial projections of long-term care (LTC) insurance utilization is similar. In this article, Milliman’s Jeremy Hamilton and Tim Kempen focus on two methods for using current utilization levels to develop utilization assumptions for future durations: an “average utilization” method and a “distribution” method. They also outline the advantages and disadvantages of both methods.

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