It is no secret that fewer consumers are buying long-term care insurance—annual sales are only about one-third of what they were a decade ago. But it turns out that those who are still buying are purchasing less coverage than ever, even though long-term care costs are rising. When industry leader Genworth Financial Inc., which sold about one-third all traditional LTC [...]
Last week, Genworth Financial, the dominant player in the traditional long-term care insurance market, acknowledged it is continuing to struggle to keep the product afloat. The firm announced it increased its reserves against future insurance claims by $531 million and said it is reviewing outstanding policies to determine whether it will have to take an additional charge before the end [...]
After Thomas J. McInerney took the helm of insurance giant Genworth Financial Inc. last January, he ordered an intensive review of the firm’s long-term care insurance business. Genworth was one of the biggest players in the market, but the industry was struggling and investors unhappy. In an exclusive interview, McInerney tells Caring for Our Parents about his decision to stay [...]
After an intense internal review, the nation’s dominant long-term care insurance company has decided to continue selling policies. However, Genworth Financial Inc. is making major changes in the way it plans to manage its future business including asking regulators for smaller but more frequent premium increases on new policies. Genworth CEO Thomas J. McInerney told institutional investors this morning that [...]
Genworth Financial, the nation's largest seller of long-term care insurance, is engaged in an “intense, very broad, and deep review of all aspects of our long-term care insurance business,” president and CEO Tom McInerney told investors last week. Industry sources say the firm could withdraw from the market if it does not win regulatory approval for new rate hikes on [...]
It is a cruel paradox: As the cost of long-term care rises and the number of people needing it grows, traditional options for paying for these supports and services are narrowing. Traditional private long-term care insurance is largely disappearing from the marketplace. Reverse mortgages, already something of a niche product, are likely to become harder to get-- especially for those [...]
The long-term care insurance industry is in big trouble. Consumers aren't buying. Carriers are dropping out of the market. And those that are staying are raising premiums, cutting discounts, and eliminating products--all of which are discouraging even more consumers from buying. What's gone wrong? The industry has two fundamental problems. A long-standing one--buyers are dropping coverage less often than the industry predicted. And a more [...]