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WASHINGTON, Jan. 26, 2021 /PRNewswire/
A new issue brief from the American Academy of Actuaries applies actuarial expertise to provide an understanding of how COVID-19 could impact long-term care insurance (LTCI), including LTCI delivery, demand, and markets, as well as new public policy considerations. The elderly, who most benefit from long-term care services, have as a group experienced an outsized toll from the COVID-19 pandemic, adding to our sense of need to assess the pandemic s consequences for long-term care insurance, said Bruce Stahl, a member of the Academy s Long-Term Care Reform Subcommittee, which authored
Impact of COVID-19 on Long-Term Care Insurance. Adjustments to underwriting and persistent low interest rates are COVID-19-related impacts already clearly affecting LTCI. More time and experience will tell if there are other consequential effects, such as a shift from facility to home care settings, or increased care needs for COVID-19
About American Academy of Actuaries
The American Academy of Actuaries is a D.C.-based 18,000-member professional association whose mission is to serve the public and the U.S. actuarial profession. Academy members include consultants, corporate executives and staff, regulators, government officials, academicians, and retired actuaries. Their areas of practice cover pensions, life insurance, casualty insurance, health insurance, financial reporting, risk management, and more.
WASHINGTON A new issue brief from the American Academy of Actuaries applies actuarial expertise to provide an understanding of how COVID-19 could impact long-term care insurance (LTCI), including LTCI delivery, demand, and markets, as well as new public policy considerations. “The elderly, who most benefit from long-term care services, have as a group experienced an outsized toll from the COVID-19 pandemic, adding to our sense of need to assess the pandemic’s consequences for long-term care insurance,” said Bruce Stahl, a member of the Academy’s Long-Term Care Reform Subcommittee, which authored
Impact of COVID-19 on Long-Term Care Insurance . “Adjustments to underwriting and persistent low interest rates are COVID-19-related impacts already clearly affecting LTCI. More time and experience will tell if there are other consequential effects, such as a shift from facility to home care settings, or increased care needs for COVID-19 survivors.”
Many terminated or furloughed employees have taken early retirement, curtailing contributions and raising payout obligations.
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“The Impact of COVID-19 on Retirement Plans,” a webinar hosted by the American Academy of Actuaries Pension Practice Council, explored how the coronavirus pandemic has affected various types of pension plans.
Linda Stone, senior pension fellow, American Academy of Actuaries, said, “Equity markets have recovered following a significant downturn during the first quarter of 2020. Year-to-date through November 30, U.S. equities have returned 15%. However, that has been offset by interest rates falling to historic lows. As a result, long-term corporate bond yields are down 70 basis points [bps] year-to-date through November 30.”