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NAIC Seeks Actuarial Services for LTCI Rate Project

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The National Association of Insurance Commissioners (NAIC) is moving ahead with an effort to develop a consistent national approach to long-term care insurance (LTCI) rate change reviews

The NAIC has started hiring an actuarial services provider to help with the process of gathering and analyzing the data needed to support the LTCI rate review project.

(Related: NAIC Forms Top-Level Long-Term Care Insurance Task Force)

The Kansas City, Missouri-based regulator group posted a request for proposals (RFP) from actuarial services providers on its website earlier this week.


The actuarial services provider must collect data from 19 insurers selected by regulators from the seven states overseeing the LTCI rate review project data call.

Proposals from the actuarial services providers are due Dec. 11. The NAIC hopes to select a services provider in mid-February, according to the RFP.

James Woody, the NAIC’s chief financial officer, signed the letter introducing the RFP.

The NAIC’s Long-Term Care Insurance Task Force “is charged with developing a consistent national approach for reviewing long‐term care insurance rates that results in actuarially appropriate increases being granted by the states in a timely manner and eliminates cross‐state rate subsidization,” according to the “scope of work section” in the RFP.

The Task Force

The NAIC set up the task force earlier this year. The task force is part of the NAIC’s Executive Committee.

Scott White of Virginia is the task force chair.

Regulators in some states are resisting rate increase requests from LTCI issuers, arguing that the requests are not actuarially justified.

Regulators in other states contend that the requests are justified, and that the states resisting the requests may be causing LTCI rate increases to be higher than they should be in other states.

The NAIC says in the task force charges, or official to-do list, that officials recognize the “gravity of the threat posted by the current long-term care insurance environment both to consumers and our state-based system of insurance regulation.”

The task force aims to deliver a proposal for improving the system to the NAIC Executive Committee by the time of the NAIC’s 2020 fall national meeting.


More information about the NAIC’s request for actuarial services is available here.

Information about the NAIC’s Long-Term Care Insurance Task Force is available here.

— Read AG 51 Gives State Regulators a Window Into LTCI Issuer Financeson ThinkAdvisor.

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