Prudential Bites the Dust

[Crabcake Johnny]

You wanted a source - you got a source. You want to Google about specific carriers that have left recently - you already know who they are. Some very big names...and a lot. But don't worry - it's thriving.

 

[VolAgent]

just goes to show you can't believe everything you read on the internet.

does that person actually think that 115 have left the market... what an ***.

Then post who still offers it, and what percentage of the market they represent. We have seen several major carriers pull out or limit their offerings in just the past year. MetLife, Prudential, and Guardian just to name three. Tell me one company that got into the market in the past year?

You're like the guy that is arguing their will be no changes in health insurance due to Obamacare.

 

[Mr_Ed]

You wanted a source - you got a source. You want to Google about specific carriers that have left recently - you already know who they are. Some very big names...and a lot. But don't worry - it's thriving.

after met life left the market in Nov, 2010, sales of LTCi policies went up in 2011, industry-wide.

how did that happen?

 

[Crabcake Johnny]

I don't have a dog in the fight. I hope LTC goes more main stream and less carriers pull out.

 

[Chuckles21]

just goes to show you can't believe everything you read on the internet.

does that person actually think that 115 have left the market... what an ***.

NADM,

I find it hilarious that you brushed aside my post with a response of "do the math. your math is way off." ,which you still have not clarified where my math is wrong, and then you can't even do a simple equation.

125 - 10 = 115 so good job there (pat yourself on the back)
100% - 95% = 5%

It clearly states that 10 carriers make up 95% of sales. By your math that means that only 10 carriers are still around and that the last 5% is caught somewhere in a black hole. When what it really means is that there are more than 10 but that there is a small majority that sell the vast majority of policies.

So I can't resist but to say that you should probably take your own advice of "do the math. your math is way off."

 

[Arthur Rudnick]

Originally Posted by Never_a_dull_moment

please just provide a number. Since it's so easy to find all the companies that have fled this market. How many have?

Since 2002, the following carriers have disappeared. Some by choice and others due to various circumstances. I'm sure I'm missing many, but I'm going by NY carriers:

MetLife
Unum
CNA
Conseco
First Fortis
Allianz
Prudential
Travelers
Guardian
American Progressive
Penn Treaty

Genworth will own approximately 60% of the business and if they ever decide to bail out, the game could be over.

In spite of Scott's "IBM/Computer" analogy, LTCi is a different animal. Is there still business to be done? Yes there is.

Every carrier that voluntarily left the market did so for one reason: Their ROI sucked! Bad actuarial assumptions, low interest rates, yada, yada, yada.

For the financial giants (Met & Pru) LTCi was a very small part of their entire business, so for them to walk away was no big deal. These are public companies and they have shareholders to concern themselves with.

It's unfortunate because as the 80 million baby boomers age, they're facing a potential catastrophic financial burder in 20 years without a LTC policy.

Those who specialize in the product will continue to fight on, but as stated by many here, it's just not worth the trouble to sell a product in what is perceived to be a troubling market place.

 

[VolAgent]

Finally, a fresh breath of reality from a LTCi expert. No one wants this to fail, but denying reality doesn't help either.

 

[Mr_Ed]

Finally, a fresh breath of reality from a LTCi expert. No one wants this to fail, but denying reality doesn't help either.

Here's some reality:

http://www.insurance-forums.net/forum/long-term-care-insurance-forum/everyone-must-immediately-stop-selling-disability-insurance-t39569.html


nadm

 

[somarco]

It's unfortunate because as the 80 million baby boomers age, they're facing a potential catastrophic financial burder in 20 years without a LTC policy.

Well, there's always the CLASS Act to pick up the slack.

Oh wait, that was torpedoed due to lack of funding.

Here's a thought.

Maybe if the LTCi market dries up (not saying it will) the nursing homes and assisted living industry will be forced to cut their rates so they can survive.

In some ways the LTCi market is suffering from the same ills as Medicare.

When these health care plans were put in place folks didn't live as long, especially once their health started to deteriorate. Of course the LTCi carriers can't print money to stay afloat, but the govt can . . .

 

[Arthur Rudnick]

Originally Posted by Never_a_dull_moment

Here's some reality:

Everyone Must Immediately Stop Selling Disability Insurance

Ridiculous comparison. This is a LTCi conversation not DI. Post this on the DI Forum.