Tag Archives: Tim Kempen

Long-term care valuation survey

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.

To read the full report by Milliman’s Al Schmitz and Tim Kempen, click here.

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.




Long-term care insurance valuation: An industry survey of assumptions and methodologies

Milliman consultants Al Schmitz, Daniel Nitz, Tim Kempen have published a long-term care (LTC) insurance valuation survey. The survey reviews and documents 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.

To download the research report, click here.