The coronavirus pandemic is affecting every line of
insurance including the long-term care (LTC) marketplace. This reading list
highlights Milliman articles and papers focusing on the various issues and
implications that LTC carriers and other stakeholders must consider due to the
- Impacts of COVID-19 on in-force long-term care insurance
By Jeff Anderson and Mike Bergerson
This paper examines the potential impact of COVID-19 on the LTC insurance industry based on a mortality case study. It focuses on in-force blocks of stand-alone LTC insurance in the United States.
- Pandemic risk on long-term care insurance reserves
By Andrew Dalton, Jeremy Hamilton, Al Schmitz, and Juliet Spector
The coronavirus pandemic will affect underlying LTC insurance cash flows. In this paper, Milliman actuaries provide a useful framework that can help carriers develop appropriate short- and long-term assumptions in order to project future cash flows.
This Society of Actuaries article by Jeff Anderson and Mike Bergerson explores the advantages and disadvantages of long-term care policy buyouts from various stakeholder perspectives. It also discusses actuarial implications for a carrier thinking about offering a buyout plan.
Utilization is a key aspect of long-term care (LTC) insurance assumptions that can impact insurers’ pricing, profitability, and reserves. Several nuances can make it challenging to develop and set appropriate utilization assumptions. In the article “Utilization: Long-term care’s ‘middle child’,” Milliman actuaries Mike Bergerson and Michael Emmert discuss some factors involved with calculating utilization and how they affect LTC reserves.
The long-term care insurance industry continues to look for ways to manage disparities between premiums and costs. Premium increases and benefit reductions are likely to remain major factors in business decision-making. Insurers must carefully consider the impact of rate changes on their bottom line—not just in terms of raw numbers, but in how they relate to experience and the potential for future profits or losses across the spectrum of benefits. Milliman actuaries Mike Bergerson and John Hebig provide some perspective in this article.
This article was originally published in the April 2017 issue of Long-Term Care News.