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TMCNet:  A.M. BestTV: Long-Term Care Insurers Look to Pricing and Regulators, Say A.M. Best Analysts

[March 12, 2018]

A.M. BestTV: Long-Term Care Insurers Look to Pricing and Regulators, Say A.M. Best Analysts

In this A.M.BestTV episode, A.M. Best Senior Industry Research Analyst George Hansen and Financial Analyst Bruno Caron discuss a new report that examines the long-term care insurance sector, which has seen a multitude of carriers leave the market or change their approaches in the hopes of achieving profitability. Click on http://www.ambest.com/v.asp?v=ltc318 to view the entire program.

The long-term care industry continues to suffer from hard times as underpricing from yesteryears has led to profitability issues and sizable losses.

"Long-term care is different from life and annuity insurance on many fronts," said Caron. "The abundance of assumptions that are required to price and reserve long-term care are very high. Additionally, the interdependences between assumptions are also differentiating factors from life and annuity that definitely exasperate the issues."

Hansen highlighted the industry's long-term prospects.

"There is definitely a premium deficiency that exists with long-term care," said Hansen. "However, there have been discussions in the capital markets about various solutions that can be offered to consumers to eliminate some of the risks in long-term care."

Hansen also believes that the product could undergo a revision if the regulators approve a proposal to tweak the premium structure, thereby giving companies more flexibility. However, how consumers will react to such a proposal, said Hansen, is questionable.

To access a copy of this market segment report, titled, "Long-Term Care Rate Increases Drive Premium, Loss Ratio Remains Volatile," please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=270763.

Recent episodes of A.M.BestTV include:

  • Life Settlement Investors Hope Demographics Are Catching Up With Sector: Attendees to the annual Life Insurance Settlement Association's institutional investor conference in New York said the influx of baby boomers entering their 70s' could help meet investor demand for life settlements: http://www.ambest.com/v.asp?v=lisa318.
  • Asia CEO Conference Attendees: Look Beyond Insurance: Attendees to the 18th Asia CEO Insurance Summit in Singapore said top insurance leaders should focus on technology, changing customer expectations and on positioning organizations for long-term success: http://www.ambest.com/v.asp?v=apceo2218.
  • U.S. Property/Casualty Insurance Sector Poised for an Improved 2018, Says A.M. Best Managing Director: John Andre, managing director, A.M. Best, reviews a new report that shows a second year of underwriting losses in 2017 for the U.S. property/casualty insurance segment: http://www.ambest.com/v.asp?v=rppc218.

A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View A.M.BestTV episodes at http://www.ambest.tv.

A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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