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Commercial long-term care insurance: Actuarial and operational considerations

12 January 2023

In October 2022, the China Banking and Insurance Regulatory Commission issued a notice seeking comments on the piloting of life insurance and long-term care (LTC) insurance conversion business. In this article, we will discuss the actuarial models and assumptions commonly used in the space, based on overseas market experience. We also discuss the factors and capabilities that insurance companies need to consider when exploring and operating LTC insurance. The article is organized as follows:

  • Uniqueness of LTC insurance
  • Main assumptions involved in LTC cost projection
  • Evolution of LTC cost projection models
  • Considerations for operation and management of LTC insurance

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