Long Term Care (LTC) has been a challenging line of business for many insurance companies. Underwriting results have been disappointing, forcing a number of LTC writers to increase policyholder premium rates to offset deteriorating experience, and curtail new business sales.
Elucidor can help carriers better understand their historical experience and more accurately project future experience. Elucidor can create customized incidence, continuance and claim cost tables to fit each company’s own data. With our use of cutting-edge Predictive Modeling Techniques, we can determine on a micro level the effect of various underwriting criteria, policy benefits, and other parameters on the financial performance of a block of business. This will enable companies to:
- Better predict future experience on their inforce LTC block;
- Refine underwriting policies and procedures to reflect the morbidity relationships among underwriting classes and enhance the precision of new business morbidity assumptions;
- Price products for improved profitability.
Elucidor can also create and implement comprehensive plans for companies to improve the performance of lagging Long Term Care portfolios. Some of the methods we employ include:
- Determining an optimal strategy of rate increases, including offering benefit alternatives;
- Re-designing products to improve results relating to claim experience not consistent with pricing;
- Planning and managing the commutation of selected existing claims.