State insurance regulators are thinking about whether insurers should use a new, eagerly awaited batch of long-term care insurance (LTCI) experience data in official reserve calculations.
Members of the Health Actuarial Task Force, part of the National Association of Insurance Commissioners (NAIC), have been talking about the future use of the LTCI data during conference calls organized by the task force and its subgroups.
A team at the Society of Actuaries (SOA) spent years gathering and organizing data for the Long-Term Care Experience Basic Tables project. The tables show what happened inside the participating insurers’ U.S. LTCI operations from 2000 through 2011. The participating insurers account for about 70 percent of the U.S. LTCI market, according to project managers.
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Insurers, regulators and others have said that a lack of good, current experience data has contributed to the problems insurers have had with setting stable LTCI prices.
Some insurance industry actuaries have been asking regulators to do more to verify the new SOA data before building it into official reserve valuation tables, according to summaries of Health Actuarial Task Force conference calls included in a packet the task force put together for the NAIC’s summer meeting.
The LTCI project team should see how splitting active LTCI sellers from the other LTCI coverage issuers affects the tables, industry actuaries said.
Industry actuaries would also like to see regulators get similar data from the LTCI issuers that did not participate in the SOA project, to see how non-participant experience compares with participant experience.