Shift in Long-Term Care Planning Shapes ILTCI Meeting

Representatives from Mutual of Omaha and Genworth gave a presentation on field underwriting for stand-alone LTCI. They pointed out that the approval rate is 76.5% for LTCI applicants ages 40 to 59, and 80.7% for applicants ages 60 to 65. The approval rate is just 60% for applicants ages 71 and older.

Steve Cain of LTCI Partners LLC moderated a discussion on worksite sales of stand-alone LTCI. Session speakers presented a chart, based on LIMRA data, showing that both employers and employees are still more interested in LTCI than in disability insurance or critical illness insurance.

But many of the actuarial, finance, claims, underwriting, legal, compliance and management sessions were related to the problems in the LTCI market.

Peter Lucas, for example, moderated a panel discussion on "operational implications of insolvencies."

The panel included Robert Robinson, who's Penn Treaty's chief liquidation officer, and Richard Klipstein, an executive vice president at the National Organization of Life and Health Guaranty Associations. Panel members noted that LTC Re, a reinsurer set to manage Penn Treaty assets and guaranty fund assessments for state guaranty associations, now has to help 44 guaranty associations handle Penn Treaty asset and policy administration.

Some sessions focused on life insurance and annuity products that include long-term care (LTC) benefits. A panel on combo product marketing included a representative from Pacific Life.

Links to more information about the conference, including meeting presentation slidedecks, are available here.

— Read ILTCI Attendees Hope Traditional LTCI Gets Better soon on ThinkAdvisor.

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