It’s no secret that long-term care insurance (LTCI) carriers have been exploring ways to manage in-force blocks of business over the last two decades. Policyholders often make the following benefit changes to mitigate the impact of a rate increase. This article, published in the Long-Term Care News by the Society of Actuaries, explores the impacts these benefit reductions have on assumption development and a block’s lifetime loss ratio, specifically when evaluating assumptions and experience by benefit characteristic cohorts. We discuss the experience study impacts and considerations, as well as impacts on lifetime loss ratios and cohort evaluation considerations.

Read the article here.