Long-term care: A product with many variations
In many developed markets long-term care has become an integral part of an insurer's product portfolio. But there are many different types, reflecting the fact that policyholders' requirements are so varied.
Munich Re is at your service as a competent partner in product development. Our worldwide presence means that we are very familiar with international developments.
You can select from a wide variety of product types, ranging from pre-funded long-term care riders to "point of need" products. The latter enable persons who already require long-term care to take out an immediate annuity by paying a single premium.
When you have decided on the basic product, it can be adapted to your specific necessities (see "background"). In considering the definition of long-term care you could, for example, decide to adopt the international ADL approach ("activities of daily living" in connection with mobility, hygiene and nourishment) or align it to the pattern of social insurance.
Munich Re has carried out an analysis of more than 18,500 claims from an exposed portfolio of around 740,000 policies. We are therefore uniquely positioned to derive longterm care incidence rates for particular regions or particular product types, and to provide you with premium and reserving bases, sample policy conditions and much more.
As part of our underwriting service we will develop and provide you with application forms appropriate to the risks involved.
As dementia is the number one cause for long-term care claims, it is particularly important in the case of elderly applicants to develop screening methods such as the DWR test (see "background"). Our expertise in managing claims is also available to you when claims occur.
Finally, you will also benefit from our cooperation with LifePlans, a professional service company which operates exclusively in the areas of long-term care underwriting and claims management. LifePlans is an affiliate of MARC Life, our subsidiary life reinsurer in the USA.