Analysts at A.M. Best have found some signs of warmth in the U.S. long-term care insurance market.
The number of new lives insured at nine insurers increased to 107,676 in 2022, up 11% from the number of new lives the companies added in 2020, according to a firm review of the insurers' financial statements.
The number of new lives increased by more than 10% between 2020 and 2022 at three insurers: New York Life, Thrivent Financial for Lutherans and National Guardian Life.
At National Guardian Life, which is known for starting a new line of stand-alone LTCI products at a time when bigger insurers were fleeing from the market, increased the number of new lives by 184%, to 1,675.
What It Means
New sales of long-term care insurance policies still happen.
The Background
The U.S. long-term care insurance market grew rapidly from the 1980s through the early 2000s, then iced over around 2005 as insurers faced a combination of new premium stability regulations and realized that they had been overly optimistic about how consumers would use their policies.
Many of the insurers still in the market have pushed through many rounds of premium increases in an effort to make the numbers work.
