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Interactions of LTC Morbidity and Mortality

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Actuarial Aspects of Long Term Care

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Abstract

Among the most difficult challenges facing the practicing LTC insurance (LTCI) actuary is validating the assumptions of his/her model, individually and in aggregate, for the purposes of pricing and/or valuation of LTCI products. The difficulties arise from the unique characteristic of LTC insurance whereby the majority of benefit payments are made many years, even decades, after issuance of the respective policies combined with the inherent uncertainties of the cumulative incidence and severity of claims over the life of each policy form. This differs significantly from single-premium whole-life insurance, for example, where the death benefit and the occurrence of death are certain, leaving only the timing uncertain.

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Acknowledgements

Support for the research presented in this chapter was provided by the National Institute on Aging, through grant numbers P01-AG043352, R01-AG007370, R01-AG046860, and R56-AG047402-01A1. We gratefully acknowledge use of services and facilities of the Center for Population Health and Aging at Duke University, funded by NIA Center Grant P30-AG034424. David L. Straley provided programming support.

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Authors and Affiliations

  1. Duke University, PO Box 90408, Durham, NC, 27708-0408, USA

    Eric Stallard

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  1. Eric Stallard
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Correspondence to Eric Stallard .

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Editors and Affiliations

  1. Bellows Falls, VT, USA

    Etienne Dupourqué

  2. ISFA, Université Lyon, Lyon, France

    Frédéric Planchet

  3. ISUP, New York, NY, USA

    Néfissa Sator

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Stallard, E. (2019). Interactions of LTC Morbidity and Mortality. In: Dupourqué , E., Planchet, F., Sator, N. (eds) Actuarial Aspects of Long Term Care. Springer Actuarial. Springer, Cham. https://doi.org/10.1007/978-3-030-05660-5_1

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