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

  • Print
  • Connect
  • Email
  • Facebook
  • Twitter
  • LinkedIn
  • Google+
By Allen J. Schmitz, Daniel A. Nitz | 01 December 2012

Milliman's fourth triennial long-term care (LTC) insurance valuation survey, following surveys in 2003, 2006, and 2009, reviews and documents the assumptions and methodologies related to the determination of active life and disabled life reserves, as well as the asset strategies and investments backing the reserves.

We present survey results from 26 carriers, including a brief commentary on the application of various methods and approaches of several technical LTC valuation issues. The results of this survey are intended to provide interested parties with general benchmarks regarding insurers’ current valuation assumptions.