Filed Under:Health Insurance, Disability

NAIC Working on Group LTD Valuation Table

What will happen if one of these workers files a group LTD claim? Actuaries are trying to improve the forecasts. (AP Photo/Reed Saxon)
What will happen if one of these workers files a group LTD claim? Actuaries are trying to improve the forecasts. (AP Photo/Reed Saxon)

A working group is pushing ahead with an effort that could affect how insurers reserve for group long-term disability insurance (LTD) business.

The working group, made up of representatives from the American Academy of Actuaries (AAA) and the Society of Actuaries (SOA), Schaumburg, Ill., recently sent an update on efforts to develop a group LTD valuation table to the Health Actuarial Task Force at the National Association of Insurance Commissioners (NAIC), Kansas City, Mo.

The appointed actuary should bear ultimate responsibility for maintaining reserve adequacy, the actuaries say.

Reserves should be higher than 100% of an insurer's own claims experience, and they ought to be higher than 130% of what the valuation table shows the expected claims level to be, the actuaries say.

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Nichole Morford

Nichole Morford
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