Genworth on Review

So they lower rates on new business then come back and get you later with rate increases. Consumer is very confused. How do you guys explain all this these days, and keep a straight face doing it?
 
Genworth has already announced they will be lowering rates on Flex 3 as well as making some revisions. Good move.

Perfect timing.

AM Best lowers Genworth rating to A-.

Genworth recognizes it will need to make changes to compete for business now.

Price sells cars as they say.

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So they lower rates on new business then come back and get you later with rate increases. Consumer is very confused. How do you guys explain all this these days, and keep a straight face doing it?

You are so right Bill, but.....Don't have to explain anything.

Lincoln Moneyguard: guaranteed
State Life Asset Care: guaranteed
Mass Mutual Signature Care: no rate increases ever

Just focus on policies that offer stability.
Makes life easier.

I mean, some companies Personal Worksheet rate increase discosure histories have more pages than the actual application.

Go FedEx that application to a client and see how many questions arise.
 
They made those decisions a few months ago... Just takes a while to get it done. They had to refile the rates.

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So they lower rates on new business then come back and get you later with rate increases. Consumer is very confused. How do you guys explain all this these days, and keep a straight face doing it?

I agree that's not easy, but I think there's more to it than that. In speaking with some actuaries it's my understanding that FLEX 3 was priced higher than it needed to be because Genworth was winning too much of the business with FLEX 2. They wanted to slow down sales with FLEX 3 (which is why there was no time allowed for a fire sale), but they did too good a job and there were too few sales. The actuaries that I've spoken with felt good about where the FLEX 2 pricing was. That being said, we all know how hard this product is to price.

One thing important to remember is Genworth does a great job paying claims. I've never had 1 bad experience with them. They also do a great job moving the new business forward. I also wonder what's going to happen with the other carriers... Genworth has been pretty strict with their underwriting so I can't imagine that their reserves would be in worse shape then the other carriers that haven't been as selective.

I agree with Jack... The guarantees on those other products are nice. I see the value in a layered approach... Traditional LTCi (smaller) with a combo product.
 
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