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This expository thesis explores the financial health and actuarial analysis of a particular solution for those seeking stability and security in their golden years: the CCRC industry. A continuing care retirement community, or CCRC, is a comprehensive project and campus that offers its residents a full spectrum of care from

This expository thesis explores the financial health and actuarial analysis of a particular solution for those seeking stability and security in their golden years: the CCRC industry. A continuing care retirement community, or CCRC, is a comprehensive project and campus that offers its residents a full spectrum of care from independent living, to assisted living, to skilled nursing. After reading this paper, any person with no prior knowledge of a continuing care retirement community should gain a firm understanding of the background, risks and benefits, and legislative safeguards of this complex industry. Financially, a CCRC operates in some aspects similar to long-term care (LTC) insurance. However, CCRCs provide multiple levels of care operations while maintaining a pleasant, engaging community environment where seniors can have all their lifestyle needs met. The expensive and complex operations of a CCRC are not without risk: the industry has seen marked periods of bankruptcy followed by increasing and changing regulatory oversight. Thus, CCRCs require a periodic actuarial analysis and report, among array of other legislative safeguards against bankruptcy. A CCRC's insolvency or inability to meet its obligations can be catastrophic and inflict suffering and damages not only to its residents but also their friends and families. With seniors historically being one of the most vulnerable demographic groups, it is absolutely essential that an all-encompassing care facility continues to exist and fulfill its contractual promises by maintaining sound actuarial practices and financial health. This thesis, in addition to providing an exposition of the background and functions of the CCRC, describes the existing actuarial and financial studies and audits in practice to ensure sound governance and the quality of life of CCRC residents.
ContributorsTang, Julie (Author) / Milovanovic, Jelena (Thesis director) / Hassett, Matthew J. (Committee member) / School of Mathematical and Statistical Sciences (Contributor) / Barrett, The Honors College (Contributor)
Created2017-05
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Description

Through research, interviews, and analysis, our paper provides the local community with a resource that offers a comprehensive collection of insight into the Mirabella at ASU Life Plan Community and the projected impact it will have on the City of Tempe and Arizona State University.

ContributorsStephens, Corey Christopher (Co-author) / Dicke, George (Co-author) / Anand, Rohan (Co-author) / Sadusky, Brian (Thesis director) / Schiller, Christoph (Committee member) / Dean, W.P. Carey School of Business (Contributor) / Department of Finance (Contributor) / Sandra Day O'Connor College of Law (Contributor) / Barrett, The Honors College (Contributor)
Created2021-05
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Description

Through research, interviews, and analysis, our paper provides the local community with a resource that offers a comprehensive collection of insight into the Mirabella at ASU Life Plan Community and the projected impact it will have on the City of Tempe and Arizona State University.

ContributorsAnand, Rohan (Co-author) / Dicke, George (Co-author) / Stephens, Corey (Co-author) / Sadusky, Brian (Thesis director) / Schiller, Christoph (Committee member) / Dean, W.P. Carey School of Business (Contributor) / Department of Finance (Contributor) / Department of Supply Chain Management (Contributor) / Barrett, The Honors College (Contributor)
Created2021-05
Description

An examination of various reserving methods and their application in commercial auto insurance. Seeks to answer two questions: Which is the best model, out of the Chain Ladder, Mack Chain Ladder, Munich Chain Ladder, Clark's LDF and Clark's Cape Cod methods? Which loss basis, paid or incurred, yields better reserves?

ContributorsLindgren, Connor (Author) / Zicarelli, John (Thesis director) / Milovanovic, Jelena (Committee member) / Barrett, The Honors College (Contributor) / School of Mathematical and Statistical Sciences (Contributor)
Created2022-12
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Description

Of the many retirement savings options available, defined benefit pension plans were once a retirement income staple. Due to the highs and lows of the economic cycle, defined benefit pension plans have become severely underfunded. A series of inadequate contributions, enabled by weak funding and risk management policies, poses uncertainty

Of the many retirement savings options available, defined benefit pension plans were once a retirement income staple. Due to the highs and lows of the economic cycle, defined benefit pension plans have become severely underfunded. A series of inadequate contributions, enabled by weak funding and risk management policies, poses uncertainty for the retirement of many. The cost of paying pension benefits rises as defined benefit pension plans become increasingly underfunded, burdening the employers who continue to pay them. However, without increasing these already unaffordable pension benefits alongside inflation, they become less valuable to retirees. As pension benefits lose their value and the costs of retirement, such as healthcare and assisted living, increase, defined benefit pension plans may not provide the retirement security that was once promised.

ContributorsCliatt, Charlotte (Author) / Milovanovic, Jelena (Thesis director) / Zicarelli, John (Committee member) / Barrett, The Honors College (Contributor) / School of Mathematical and Statistical Sciences (Contributor)
Created2022-05