What impact did COVID-19 have on the long-term care industry (LTCi) early on? The Society of Actuaries (SOA) recently released a survey trying to answer that question by detailing COVID-19’s impact on LTCi mortality, voluntary lapse and morbidity experience. General findings from the survey were stated as follows:
Overall, the survey results show that COVID-19 has had an impact on emerging LTC insurance experience through higher mortality (for both active and disabled lives) and lower claim incidence. Results on voluntary lapse rates were mixed; however, premium grace period extensions due to COVID-19 may have contributed to differences in reporting. The survey results also indicated that, in many cases, the impact of COVID-19 has not yet been studied or there is not yet data available. This was especially true in relation to studying COVID-19’s impact across various characteristics (gender, attained age, marital status, situs).
The survey of LTCi insurers* was conducted by Milliman from November 2020 through January 2021 and looked at the emerging impact of COVID-19 for the period from April 1, 2020 through September 30, 2020.
The full survey can be found on SOA’s website.
*The survey was sent to companies with LTC blocks of insurance and 15 companies participated, which represented approximately 50% of the insured lives in force. Participants were given the option to select multiple responses if more than one response was consistent with their experience, and for many questions, they were also asked to provide a short answer response.