What's Happening?
A new study on the long-term care insurance (LTCi) industry is being launched by LIMRA, the Society of Actuaries Research Institute, and the National Association of Insurance Commissioners. This study aims to update industry data on mortality, persistency, claim incidence, and claim termination for LTCi policies issued from 2000 to 2023. Thirteen carriers, representing two-thirds of the stand-alone LTCi market, have already agreed to participate, with more expected to join. The study seeks to provide updated and comprehensive data, which has not been refreshed since 2006, to better understand the profitability and usage of LTCi products.
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Why It's Important?
The study is crucial for the LTCi industry as it seeks to address the lack of updated data, which is essential for accurate pricing and reserving. With an aging population and increasing demand for long-term care services, having current data will help insurers develop sustainable products that meet consumer needs. The study's findings will benefit carriers, regulators, and consumers by providing insights into policy usage and profitability, ultimately leading to more competitive and reliable insurance offerings. This initiative reflects a significant step towards modernizing LTCi oversight and ensuring the industry's financial health.
What's Next?
Data collection for the study is expected to be completed by the end of September, with preliminary updates shared with participating carriers and regulators. The final results are anticipated to be released in early 2027. The study's outcomes will likely influence future LTCi product development and regulatory practices, potentially leading to more consumer-friendly policies and improved industry standards. Stakeholders will be closely monitoring the study's progress and findings to adapt their strategies accordingly.
