Prudential Bites the Dust

[Arthur Rudnick]

you said "market share".

And, where did I say "Market Share"?

Either way, that's not the point. You can spin this anyway you want and if you want to paint a rosy picture, that's certainly your option, although it's far from reality.

 

[somarco]

Got my popcorn. This is more fun than watching Republican debates.

 

[Mr_Ed]

And, where did I say "Market Share"?

Either way, that's not the point. You can spin this anyway you want and if you want to paint a rosy picture, that's certainly your option, although it's far from reality.

how is this any different than what happened to disability insurance?

 

[Arthur Rudnick]

how is this any different than what happened to disability insurance?

The difference is we're not talking about Disability Insurance, we're talking about Long Term Care Insurance.

Pru pulled out of the LTCi market, not the DI market. Isn't that what this thread is about?

And, neither you nor I are specialists for DI. You can deflect the issue all you want, but you have not once, in all of your posts addressed any of the points that were previously brought up regarding the problems in the LTCi industry.

Got my popcorn. This is more fun than watching Republican debates.

Better get a second bag. Make that with butter.

 

[CALTCAgent]

Let me stir things up a bit. I have my popcorn as well and have not read a good fight club thread in a while.

If Microsoft dominates the PC Operating System market, why can't a few companies dominate the LTC market?

I think the point about the disabilty market might be a valid one.

This is not to say there aren't problems with the LTC market, of course I'd like to see changes.

However, Prudential or others leaving the market does not concern me that much. They seemed to only be testing the waters with a product that wasn't as competitive as others, IMO.

When a "major player" leaves, then its much more concerning.

 

[bluemarlin08]

I was recently told by a Genworth person that their reserves could cover all current policyholders if they all went on claim for their entire benefit period, do you think that is a true statement?

 

[billberry12]

I highly doubt that is a true statement. No way. But I can't prove anything, so don't ask me to.

 

[somarco]

Better get a second bag. Make that with butter.

Got my blood work back. Cholesterol 157. I got some room to splurge.

I was recently told by a Genworth person that their reserves could cover all current policyholders if they all went on claim for their entire benefit period, do you think that is a true statement?

Sounds like BS to me.

I am not an LTCi guy but I do know a bit about reserves, actuarial assumptions and reinsurance.

Now if your rep is referring to TOTAL reserves across all lines of coverage, that is probably true. But allocated reserves for LTCi, hardly.

LTCi is probably reinsured on an aggregate basis which removes some of the risk. But saying that any carrier can support 100% of claims with reserves alone sounds like fantasy to me.

 

[Arthur Rudnick]

I was recently told by a Genworth person that their reserves could cover all current policyholders if they all went on claim for their entire benefit period, do you think that is a true statement?

Not sure if that's the case, but Genworth does have over $15 billion in reserves. If I had to guess, no one has higher reserves than Genworth.

"Let me stir things up a bit. I have my popcorn as well and have not read a good fight club thread in a while.
If Miscrosoft dominates the PC Operating System market, why can't a few companies dominate the LTC market? I think the point about the disabilty market might be a valid one. This is not to say there aren't problems with the LTC market, of course I'd like to see changes.

However, Prudential or others leaving the market does not concern me that much. They seemed to only be testing the waters with a product that wasn't as competitive as others, IMO. When a "major player" leaves, then its much more concerning".

First of all, I don't think this thread will be moved to the Fight Club. No fighting, just a difference of opinion.

Personally, in 16 years I have never sold a Pru policy. In NY, they were overpriced for a "good policy". There are other carriers here much less expensive with a better product.

The problem is that Pru is a major, financial service company. It wasn't the fact whether or not they were a major player, they were a major brand name. So was MetLife. And for the average consumer, when they hear about a well know name leaving the market, it only raises red flags.

Within a few days, every newspaper and financial journal in the country will jump on this and give them another opportunity to bash the product.

Is Pru leaving the end of the world? No! It just provides another hurdle to jump over when trying to make a sale.

 

[ltcadviser]

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

how did that happen?

Economy got better, Scott.