AARP Notice

[Arthur Rudnick]

From AARP's website:

IMPORTANT UPDATE

Thank you for your interest in AARP® Long Term Care Insurance from Genworth.
Genworth has ceased sales of the AARP-branded products effective June 1st, 2013. The product is no longer available.

 

[scagnt83]

Think they will find another carrier to play ball with them? In the current climate it won't be easy..

 

[yankee466]

If they maintain their standards of high financial ratings, the answer will likely be no IMHO. That leaves out the MedAmerica's and Life Secures of the world.......and the other carriers likely don't want or need the business that badly. Maybe when interest rates tick back up in the country, someone will be interested.

 

[ltcadviser]

Why would AARP nor strike a deal with a carrier. Or why would a carrier not approach AARP. Instant volume once the processes are in place. AARP is a whore for money. It will contract with an underwriter.

 

[scagnt83]

Why would AARP nor strike a deal with a carrier. Or why would a carrier not approach AARP. Instant volume once the processes are in place. AARP is a whore for money. It will contract with an underwriter.

Well obviously Genworth didnt see the value in the volume anymore.

Correct me if Im wrong, because im not the most knowledgeable about the old aarp product; but didnt it have relaxed UW requirements?

AARP usually wants relaxed UW for their partnerships.
Both their NYL Life Insurance & UHC Med Sup plans have extremely relaxed UW requirements. (as long as your not on your death bed you will be approved for those two products)(I realize the aarp ltci was not that easy to qualify for)


With loss ratios exceeding 100% on old blocks of business, and almost reaching 60% on new lines of business; I doubt GW sees the benefit in the volume when it most likely carries twice the risk. (or any other carrier for that fact)

And in the current interest rate climate I doubt many others see the value in relaxing UW requirements either. Most of them are tightening up uw requirements. (even bankers life claims to be tightening uw requirements)


I agree that once rates rise there will definitely be interested insurers. But I wouldnt bet money on it happening anytime this year (jmo)
It really just all depends on how far aarp wants the insurance company to bend over...

 

[billberry12]

The AARP/Genworth LTC product had exactly the same underwriting as the other non-AARP Genworth LTC products. No underwriting concessions at all.

 

[Arthur Rudnick]

I believe it had to do with AARP refusing Genworth's proposed rate increases and their denial of Genworth's gender-based pricing.

I guess AARP thinks they can dictate the terms of doing business with them. It may have worked in the past, but not in today's insurance enviornment.

 

[billberry12]

I believe you are exactly right Arthur.

 

[scagnt83]

I believe it had to do with AARP refusing Genworth's proposed rate increases and their denial of Genworth's gender-based pricing.

I guess AARP thinks they can dictate the terms of doing business with them. It may have worked in the past, but not in today's insurance enviornment.

Interesting.

Well the rate increases and gender pricing are coming and will keep coming as long as the fed holds rates this low.

Although maybe one of the smaller carriers would waive one or the other to get the volume and the branding opportunity. But it will be a hard sell in the current environment.

And GW was already pretty much the most competitive well rated company in the market.
So unless aarp wants to go down on the ratings scale, the rates will still be going up... so im not sure what they expect to have happen here. I guess we will find out.

 

[TriciaS]

I believe it had to do with AARP refusing Genworth's proposed rate increases and their denial of Genworth's gender-based pricing.

I guess AARP thinks they can dictate the terms of doing business with them. It may have worked in the past, but not in today's insurance enviornment.

BINGO!!! They were still selling an old product, that didn't have any of the "refreshes" the brokerage side had. They wouldn't allow new business rate changes, so that puts a drag on the whole block, which will drive rate increases. Plus is was internal competition. AARP agents selling what brokerage can't. Not fair!