LTC Insurers Face Biggest Issue: Consumer Apathy

o "Emergence of public/private partnership legislation recognizes the competitive nature of Medicaid."

As the increase in consumer awareness has yet to translate into LTC insurance sales, it is also deemed a top reason for apprehension among industry professionals. If anything, consumer awareness and sales appear to have an inverse relationship. It does seem counterintuitive that while awareness among Americans about the LTC need is on the rise, LTC planning appears to have declined and apathy prevails. The "if we build it, they will come" mentality does not apply to LTC insurance. This is a difficult reality for the LTC insurance industry to grapple with, and their frustration is evident, as in the following quotes from producers LIMRA surveyed:

o "People don't care about the next generation."

o "Consumers will need to be slapped in the face harder [by LTC issues] so that they will wake up from their denial stupor."

Insurers have always identified consumer ignorance as a major challenge facing the industry, one for which they've felt somewhat culpable. In prior studies, insurers were more likely to place the "blame" on themselves, suggesting that they were not doing a good job educating consumers. In 2006, when it comes to consumer apathy and denial, the industry's tone has changed as their frustration by it overshadows their perceived responsibility for it.

Frustration aside, LTC insurers recognize that the industry can and must do more to increase actionable awareness. A majority of those surveyed admit their companies are not doing enough–beyond their own marketing efforts and self-promotion–to educate and motivate the American public. The study also reveals the desire of most to change the product itself in an effort to gain the attention of more Americans. To that end, efforts to simplify and make more affordable the stand-alone LTC insurance product will be the trend, while combination products also are expected to gain significant momentum.