Professor Joël Wagner and PhD student Michel Fuino, both from the Department of Actuarial Science at HEC Lausanne (UNIL) received the Best Paper Award in the field of demographic change and longevity at the International Congress of Actuaries (ICA), held in Berlin in June. They received the award for their research article entitled: “Long-Term Care Models and Dependence Probability Tables by Acuity Level: New Empirical Evidence from Switzerland”.
Held every four years, this year’s ICA Congress brought together over 2,700 people and is the world’s largest conference on actuarial science. Joël Wagner and Michel Fuino attended the event to present their research, which relates to understanding the long-term care needs of elderly people. Demographic changes and the ageing population will be a systemic threat for the financing of care in many countries in the future.
The scarcity of knowledge about the care needs of elderly people in their day-to-day activities has hindered the development of private insurance solutions. Joël Wagner and Michel Fuino are the first researchers to produce probability tables for the Swiss population, describing the dependency of elderly people by gender and by age. The tables differentiate care based on the level of severity and by the type of care required. They also consider the time spent in various states of dependency. Such tables lay the basis for the calculation of insurance pricing.
Their research article has just been published in the prestigious academic journal, Insurance: Mathematics and Economics.