In a recent review of individual long-term care insurance (LTCI) operations in the U.S., Fitch Ratings analysts gave LTCI an assessment of “Unfavorable Results; Uncertain Outlook.” According to the analysts, the growth in LTCI premium production and covered lives has stalled and the market share is the most concentrated of all other major insurance markets. The analysts claim that LTCI’s biggest problem is the combination of the difficulty of pricing the relatively new product and the need for higher reserves.
See Allison Bell, Fitch, LTCI Market Faces Uncertain Outlook, Life Health Pro, Nov. 10, 2011.
Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.
