Derivation of the calculation bases DAV 2008 P for long-term care pension (supplementary) insurance

Abstract

This report on findings concerns actuaries in life insurance; it applies to the reserving of new long-term care pension (supplementary) insurance policies taken out from the beginning of 2009 from the first balance sheet date following January 1, 2009.

Of course, every responsible actuary must check whether there are any company-specific circumstances that speak against the unchanged adoption of the calculation bases derived in the guideline for the reserving of long-term care pension (supplementary) insurance policies. In the same way, the responsible actuary must decide whether the calculation bases can be used unchanged for the reservation of a specific product. If necessary, the responsible actuary must make suitable adjustments to the calculation bases.

In accordance with the DAV's “Procedure for determining technical principles”, other calculation bases may also be used for reserving long-term care pension (supplementary) insurance policies in convincingly justified cases. In this context, convincingly justified means: the appropriateness of the actuarial bases has been demonstrated by the quality and significance of the data sources; the entire actuarial base system has been checked for internal consistency; the structure and amount of the selected safety margins have been confirmed as appropriate by an analysis of the overall safety level generated. The statements in the guideline on these aspects represent a minimum methodological standard.

The DAV 2008 P calculation bases are generally also suitable for calculating premiums for long-term care (supplementary) insurance.

Reports on findings are summaries of the results of work carried out by DAV committees or working groups,

• where their application can be freely decided upon within the framework of the code of conduct,
• that should inform discussion of the current opinion among actuaries or also among the broader public. 

As working results of a single committee, they do not, for the time being, represent any recognised position within the DAV and do not comprise any actuarial standards of practice. In this respect they are clearly distinguishable from any standards of practice.