Low Interest Rates Push Prices for New Life-LTC Hybrids Higher: Milliman
October 7, 2020 by Allison Bell
Falling interest rates seem to be hitting issuers of long-term care (LTC) hybrid products hard.
Actuaries at Milliman have included comments supporting that assessment in a new summary of results from an LTC hybrid issuer survey.
Seven of the nine carriers that participated said they had increased LTC hybrid prices at least once in the previous 12 months, and two said they had repriced their products three or more times.
“The low interest rate environment was reported as a factor by all seven participants,” according to the Milliman actuaries. “None of the participants indicated that mortality impacts due to COVID-19, adverse mortality experience, or change of profit target drove the repricing.”