Analysts have told the Virginia Bureau of Insurance that they see no easy answers to the rate increase problems plaguing the private long-term care insurance (LTCI) market.
The analysts — John MacBain and Shawn Parks of Actuarial Resources Corp. of Georgia, and employees of the state Bureau of Insurance — say regulators must try to balance the interests of policyholders and the issuers’ duty to protect company solvency.
The bureau commissioned the report in response to a State Corporation Commission order requiring it to study the LTCI rate increases made since 2009.
The commission is asking for public comments on the report and for comments about whether it should change state LTCI rules.
The commission noted that 259,159 state residents have LTCI coverage, and that the commission has received about 340 written LTCI complaints in the past two years. Roughly 10 percent of the state’s life and health complaints have been about LTCI coverage.
The Actuarial Resources actuaries looked at rate stability mechanisms used in California, Florida, North Carolina and Wisconsin, and they also looked at a report from the National Association of Insurance Commissioners.
The actuaries discuss the pros and cons of each mechanism.