Abstract
This paper deals with Enhanced Pensions, i.e. Long Term Care (LTC) insurance covers for the elderly, providing a straight life annuity uplifted in case the insured becomes disabled (according to a given definition of LTC disability). The risks borne by the provider of the benefit, either an insurer, a pension scheme or a sickness fund, are focused. With reference to demographical risks, some tools which can be used to face the risks themselves are discussed. In particular, a proper solvency reserve, tailored to the characteristics and magnitude of the risks, and a stop-loss reinsurance arrangement are analyzed.
KEYWORDS: Long Term Care insurance, enhanced pension, projected mortality table, projected inception rates, longevity risk, pooling and non-pooling risks, solvency reserve, stop-loss reinsurance treaties
Volume
Washington
Year
2001
Categories
Actuarial Applications and Methodologies
Regulation and Law
Solvency
Business Areas
Other Lines of Business
Publications
ASTIN Colloquium
