Actuarial Applications of a Statistical Model for Long-Term Care Insurance Operated with a Score-based Grading System: A Case Study of Korean Long-Term Care Insurance (K-LTCI)

Kwon Hyuk-Sung (), Ko Bangwon and Kim Ji-Hae
Additional contact information
Kwon Hyuk-Sung: Department of Statistics and Actuarial Science, Soongsil University, 369 Sangdo ro Dongjak gu Baird hall room 509, Seoul 156–743, South Korea (Republic of)
Ko Bangwon: Department of Statistics and Actuarial Science, Soongsil University, 369 Sangdo ro Dongjak gu Baird hall room 516, Seoul 156–743, South Korea (Republic of)
Kim Ji-Hae: Department of Statistics and Actuarial Science, Soongsil University, 369 Sangdo ro Dongjak gu Baird hall room 516, Seoul 156–743, South Korea (Republic of)

Asia-Pacific Journal of Risk and Insurance, 2016, vol. 10, issue 2, 217-243

Abstract: Long-term care insurance plays a very important role as providing a protection against financial risk of an individual when he/she becomes in a health condition incurring significant costs for long-term care. Construction of an appropriate actuarial model for long-term care is an integral part of maintaining and improving a long-term care insurance system. A model is suggested for analyzing the impact of change in score-based long-term care grading system and for estimating future cost of long-term care insurance. A spliced distribution was used to model assigned scores for long-term care insurance in Korea based on experience data. The suggested approach is quite flexible, as it allows us to adapt to possible changes in the grading system.

Keywords: long-term care insurance; cost projection; simulation; splicing; actuarial model (search for similar items in EconPapers)
Date: 2016
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/apjri-2015-0028 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:apjrin:v:10:y:2016:i:2:p:217-243:n:3

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/apjri/html

DOI: 10.1515/apjri-2015-0028

Access Statistics for this article

Asia-Pacific Journal of Risk and Insurance is currently edited by Michael R. Powers

More articles in Asia-Pacific Journal of Risk and Insurance from De Gruyter
Bibliographic data for series maintained by Peter Golla ().