Milliman has conducted its sixth triennial long-term care (LTC) insurance valuation survey. This year’s survey focused on individual LTC and did not include group business. Many of the survey questions remain consistent with the previous surveys, which allows for comparisons of the changes in response over time.
The objectives of this survey are to review and document the assumptions and methodologies related to the determination and testing of active life and disabled life reserves as well as the asset strategies and investments backing the reserves.
The information presented includes brief commentary on the application of various methods and approaches of several technical LTC valuation issues. The results of the survey are intended to provide interested parties with general benchmarks regarding insurers’ current valuation assumptions.