Health Section: GE & Long Term Care Reserves

<p><span style= "font-size: 11.0pt; font-family: 'Calibri',sans-serif; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA;"> Dave Dillon discussed with Paul Conlin, FSA, MAAA, the recently-published book “Power Failure” by William Cohan, on the 2001-2018 unraveling of General Electric.  One of the business events which led to the near-failure of GE was an under-reserving of Long Term Care reserves by 16 billion dollars, discovered in 2018 just as various other problems were emerging for the company.  There are lessons for actuaries in the series of events which led to the LTC reserve “accident”.</span></p>