Insight
Parametric insurance: A captivating solution
Parametric policies, which pay based on the magnitude of an event, can bridge coverage gaps that are difficult to insure with a traditional indemnity policy.
This article explores in detail two methods of developing reduced benefit options: the future loss ratio neutral approach and the cash flow neutral approach. What are the considerations that long-term care insurance companies have when deciding to offer these options and what are the implications from a regulator’s point of view?
This article was originally published by the Society of Actuaries.
Insight
Parametric policies, which pay based on the magnitude of an event, can bridge coverage gaps that are difficult to insure with a traditional indemnity policy.
Developing alternative options during LTC premium rate increases: Company considerations and regulatory perspective for offering reduced benefit options
This article explores in detail two methods of developing reduced benefit options: the future loss ratio neutral approach and the cash flow neutral approach.