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