athena53
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- May 11, 2014
- Messages
- 7,384
One good rider on the policy is,if one dies the other has no premium.
I almost get the idea that state insurance commissions approve just about everything.
Should not be my problem if 20 years ago their actuaries were stupid,or had a cracked crystal ball.
Oldmike
As an actuary (but property-casualty, so not involved in pricing this coverage), I'd like to point out that they had limited data. You can find out what the likelihood of the average person is for needing LTC but now you're dealing with the population that chooses to purchase insurance. They're likely healthier and expecting to live a long time- or maybe Alzheimer's runs in the family. There's also a segment that in the past data might have held on and stayed out of LTC for as long as possible (with significant support from friends and family), but now they have insurance to they go into LTC. VERY hard to get this right with a new product.
I'm sure the states really wanted this product to be available- it might mean fewer people relying on Medicaid. They also tend to micro-manage every assumption in your pricing that might overstate the premiums and gloss over anything that might make the premiums inadequate.
My employer was a sub of a company I'll call Giant Enterprise. They sold off most of their insurance businesses at one point- but the buyers didn't want the LTC segment.