Maryland Law May Prohibit John Hancock Increase

[Crabcake Johnny]

Actually Dateline was dead on. That an annuity mill like the one profiled could not only exist but thrive shows the insane lack of quality controls in our industry.

In the insurance field, the fox guards the henhouse...for all lines.

 

[Mr_Ed]

Actually Dateline was dead on. That an annuity mill like the one profiled could not only exist but thrive shows the insane lack of quality controls in our industry.

In the insurance field, the fox guards the henhouse...for all lines.

But, using the logic that has been used in this thread, if it's true for some annuities iit must be true for all annuities. If it's true for some medical insurance policies, it must be true for all medical insurance policies. If it's true for some long-term care insurers, it must be true for all long-term care insurers. If it's true for some long-term care policies, it must be true for all long-term care policies.

 

[Norwayguy]

John, if we use your logic, Health Insurance carriers are raising rates every year does that mean they are all losing money on their blocks of business?

 

[scagnt83]

I never said the industry is in the crapper, I said its unsustainable in its current form.


Can you please tell us the 5 new companies and the 5 old companies you made mention of?
- - - - - - - - - - - - - - - - - -
The dateline annuity scandal was focused on one of the worst FIAs ever created. It also focused on scandalous sales practices.

The overall FIA market is sound, carriers are not dropping FIAs left and right.

Its not the same logic in the least.

Two big players have made major changes in a very short amount of time.

My advice to any agent is to be realistic with your clients about the possibility of future rate adjustments and industry consolidation, because its going to happen.

 

[Mr_Ed]

I never said the industry is in the crapper, I said its unsustainable in its current form.


Can you please tell us the 5 new companies and the 5 old companies you made mention of?

Unsustainable based upon what? Hearsay and yellow journalism.


stopped selling new policies in last 10 years:
C.N.A., Lincoln Benefit Life, Transamerica, Allianz, and, Met Life.

started selling new policies in last 10 years:
Berkshire Life (ever heard of Warren Buffett), Mass Mutual, Northwestern Mutual, United of Omaha, American General, and Transamerica. (not to mention LTC Partners/FLTCIP).

(yes, Transam makes it on both lists because it stopped selling, re-tooled, cut most of its overhead, and then started selling again.)

There are a few minors players that could be added to either list.

There are a few more major insurers who will jump into LTCi in 2011.

 

[VolAgent]

started selling new policies in last 10 years:
Berkshire Life (ever heard of Warren Buffett), Mass Mutual, Northwestern Mutual, United of Omaha, American General, and Transamerica. (not to mention LTC Partners/FLTCIP).

Hate to break it to you, but Berkshire Life vastly predates Warren Buffett and Berkshire Hathaway. They have absolutely nothing to do with each other. Perhaps you knowledge here is just as vast as your knowledge of LTCi profits.

 

[Mr_Ed]

Hate to break it to you, but Berkshire Life vastly predates Warren Buffett and Berkshire Hathaway. They have absolutely nothing to do with each other. Perhaps you knowledge here is just as vast as your knowledge of LTCi profits.

finally someone caught me in an incidental mistake.
now can someone please find some noteworthy mistakes I've made?

 

[CALTCAgent]

finally someone caught me in an incidental mistake.
now can someone please find some noteworthy mistakes I've made?

Yes, but you'll just edit your post.

 

[somarco]

Can't believe this thread is still around. For those who are arguing with JMO, he is an actuary and probably knows more about industry financials than anyone else on the forum.

And he made a very good point that most overlooked. The problem with the LTCi market is persistency. Lapse ratio's don't track the same as other health lines, including LTD.

The result is a greater likelihood of claims over time against relatively low premiums.

Mortality has improved over time as well, meaning people are living longer therefore increasing the likelihood of a claim. Same is true for advances in medical care which allows seniors, even those who are not healthy, to live longer which puts even more pressure on claims.

 

[Crabcake Johnny]

Hence the actual title of this thread which is JH is seeking a 40% rate increase which is so insane it may violate MD law.

What...JH doesn't have actuaries? They couldn't POSSIBLY predict rising costs? Wow. JH was "blind-sided" by people living longer and rising nursing home costs? Knock me over with a feather.

JR knows exactly what they need to charge to keep rates stable. Problem is, if they charged those rates to new policy holders, new business would plummet.