ERM-526-19: The Risk of Pricing New Insurance Products: The Case of Long-Term Care


Reading Source:

Topics Covered in this Reading:

  • What is long-term care?
  • How does LTC work?
  • How do insurers price LTC insurance?
  • Which of the LTC insurance pricing assumptions wound up missing the mark?
  • The Penn Treaty insolvency
  • Guaranty funds
  • What were the consequences?
  • Concluding comments