2014 LTCI Carrier Ranking

Oct 21, 2015

  1. Arthur Rudnick
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    Arthur Rudnick Moderator Moderator

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    Top 10 carriers reporting Stand-Alone, Individual LTCi Sales in 2014.
    (Figures in millions)

    1 - Genworth $89.6
    2 - Northwestern 57.2
    3 - John Hancock 32.3
    4 - Mutual of Omaha 31.1
    5 - Transamerica 15.5
    6 - New York Life 15.2
    7 - Bankers Life 11.5
    8 - LifeSecure 11.1
    9 - MedAmerica 10.4
    10 - Mass Mutual 10.2
     
  2. Mr_Ed
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    Mr_Ed Guru

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    3x as much premium as hybrids.
     
    Mr_Ed, Oct 21, 2015
    #2
  3. Justin Bilyj
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    Justin Bilyj Guru

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    How do you guys feel about the companies having the most sales being the most stable with rate increases in the future? I noticed Mass is pretty darn stable, and yet they are #10...
     
  4. Arthur Rudnick
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    Arthur Rudnick Moderator Moderator

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    originally posted by emptyeternity
    I think it has more to do with product, price & distribution.
     
  5. ltcadviser
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    ltcadviser Guru

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    Looking at these numbers I find it amusing that a client of mine who purchased a Mass Mutual policy with me about a year ago told me another agent he spoke to with LTCFP told him that that LTCFP did not offer Northwestern Mutual, NY Life and Mass Mutual because these companies were not "leading" long term care insurance companies.:1confused:

    My other takeaway is there are a lot of Northwestern Mutual LTC policyholders that probably were sold increasing premium (AAPB) policies. Ouch.

    ----------

    Not price, at all.

    Purely distribution channels.

    Northwestern and John Hancock are 2 of the most expensive priced LTC policies.
     
  6. Arthur Rudnick
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    Arthur Rudnick Moderator Moderator

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    originally posted by ltcadviser

    Jack,
    I beg to differ...............

    At the end of the day, it's always about price.

    How many times have you spoken with NWM policyholders who bought their policy because their agent told them that the dividends generated would reduce the cost of their policies?
     
  7. Justin Bilyj
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    Justin Bilyj Guru

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    That is a very interesting concept, pricing via distribution models, but it doesn't apply to long term rate stabilization. Sounds like an article waiting to happen...
     
  8. ltcadviser
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    ltcadviser Guru

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    Never, Arthur.

    Consumers buy insurance policies based upon relationship with the agent.
    When a consumer trusts an agent the consumer feels the agent will be looking out for the consumer's best interests.

    Price is a secondary consideration for many people. Relationship is primary.

    Arthur, you and I both know how expensive NWML has always been. And JH is not competitive either. Marketing and distribution always wins in the end.

    Today an old term life insurance client of mine called me to get LTCI quotes. I read him the numbers: MedAmerica $3700, Mass Mutual $3800, Mutual of Omaha $4500, NYL $5100, NWML $6600. He says to me..."Your NWML number is the same as my Northwestern agent just quoted me." I am glad I called. How do they get $6600?

    Well, not everyone shops around.

    People buy insurance from their agent that they trust. This gentleman had a prior relationship with me so he called. Many people don't check and just pay the higher premium.

    Don't kid yourself to believe price actually matters.

    In fact, it just does not.

    Now price is important to me when I work with my clients, but captive NWML agents are not selling on price.

    Marketing channels of distribution will always produce premium.
     
  9. Tothetop
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    Tothetop Super Genius

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    So market wise how do you sell ltcadviser? Is there one company you use as your go to company first and then branch out? Is a price a factor for you or your more concerned about perks such as specific riders or dividend paying Ltc policies? I favor mass because they seem more stable but most Ltc people I speak to preferred to be shopped around yet I am still bias to mass. I hate getting the phone calls with people talking about their rate increasing Drastically after having their policies for ten years or more and being unable to afford it. I am asking just to get some tips from you or even Arthur.
     
    Tothetop, Oct 22, 2015
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  10. ltcadviser
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    ltcadviser Guru

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    Well, I really don't "sell" anything. I simply submit applications to be underwritten. When I am contacted by consumers, they tell me how much coverage they want their policies to provide for them should they need care. My role is to listen to them, to understand their objectives, and to answer their questions.

    Now, one question might be "how much does this plan cost?" Another question might be "will my premium change?"

    So, inevitably we will have a conversation about pricing, financial ratings, premium stability history, etc.

    So, ToTheTop, within this context your bias towards Mass Mutual at today's pricing is understandable and I agree with your perspective.

    That being said, I allow my clients to reach their own conclusions based upon what is important to them. This week I wrote $12k for MedAmerica because a client wanted a 10 Pay and FlexCare is still available in AZ at great 10 Pay rates. I sent $13k to Mass Mutual for the reasons you have stated above; and I submitted $3K to Mutual of Omaha because for this client's plan design Omaha was 30% less expensive than Mass Mutual was priced, although Omaha was still not the "cheapest." MedAmerica was 15% cheaper than Omaha but the client still preferred an A+ company at a minimum.

    So, applications tend to get spread around depending upon client objectives and preferences.

    ToTheTop, I really think you are doing your clients a favor however by being biased towards a company like Mass Mutual. If you must be biased, be biased towards a company as you are for the right reasons like company strength and premium stability, not for silly policy bells and whistles.

    Your clients will thank you one day. Do not change.

    I encourage you to simply tell them about your experiences with receiving phone calls from consumers that had their premiums jacked up on them, and you've never once had to receive a call from a Mass Mutual policyholder. This is a powerful truth. Your clients will completely understand you and will want to apply to Mass Mutual.
     
    Last edited: Oct 22, 2015
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