Several weeks ago I attended the Ninth Intercompany LTCi Conference in Reno, Nevada. For long-term care insurance junkies like me this is the ultimate “wonks” trade show/meeting because we have the opportunity to get together and learn from home office folks, actuaries and industry leaders who set the trends and tenor of our business. Over the years this meeting has attracted more marketing and sales oriented organizations and agents who want the latest and greatest technologies in the industry. One other thing I’d like to say about the ILTCi Conference is that unlike many trade shows that have a tendency to become odes to its organizer, this meeting provides an enormous amount of valuable information for all interests and levels of long-term care insurance without the overt politics.
The tone of the 2009 meeting was a bit more subdued than past years. Clearly government oversight and the media have caused the insurance companies to be more circumspect in their “hospitality”. I don’t mind this; candidly, I go to these meetings for the information and networking not the food and booze. There did appear to be fewer carrier marketing representatives in evidence. A number of companies limited attendance. Others have either “reorganized” their staffs, imposed hiring freezes, or both. Also, my impression was fewer long-term care insurance agents attended this year. This is too bad because I think it is good for home office employees of all stripes to have regular contact with the field force.
That being said, the conference was great, the topics lively and the information dispensed invaluable. The clear trend on the traditional long-term care insurance side of the equation is multi-life. We’ve been talking about this for several years, and as I’ve mentioned in past posts, our multi-life sales accounted for more than 50% of 2008 production. There are also new companies coming into play. Transamerica is back in the game and LifeSecure, a wholly owned subsidiary of Blue Cross/Blue Shield of Michigan (the latter is not yet available inCalifornia – now there’s a surprise!). We’re pleased to be representing both companies and our marketing representatives are ready to assist you with information and quotes. Product innovation continues as companies attempt to simplify their products and make them appear more affordable.
As I’ve also been writing (both here and the industry trade pubs) a new era of linked life + LTCi and annuity + LTCi are set to expand consumer choices in long-term care insurance. If you’d like to read my January and February Broker World articles on this topic, please email me directly at barry@paradigmins.com. We are set to go with the products that are currently available in the market place. This includes Genworth’s TLC product and Lincoln Financials’ MoneyGuard, both single premium universal life + LTCi. Additionally we represent State Life’s Asset Care (single premium whole life + LTCi) and Annuity Care (SPDA + LTCi) as well asNationwide’s Ultimate U.L. (annual premium universal life + LTCi rider).
As to overall industry trends and outlook, traditional sales are down for some, flat for others; the Q1 LIMRA production report is pending. Much of this has to do with the economy and concerns over carrier financial viability. The long-term outlook, however, is optimistic and candidly the future will be written by those of us who choose to continue marketing and selling this product. Regardless of challenges ahead, the need for long-term care planning has not disappeared and may very well be greater than ever before. We will continue to innovate and work to help you sell more. All you need to do is talk to your clients, give them the facts and solution that fits their need.
Before I sign-off for the week I’d like to provide you with some additional information on state guarantee associations and how they may or may not work in relationship to long-term care insurance. I want to assure you that I am not concerned about any of our insurance carriers but I continue to get calls and emails from brokers regarding a few of the carriers that are struggling or that are being “rehabilitated” by their state of domicile. The American Council of Life Insurers (ACLI) has an excellent fact sheet on Insurance Guarantee Associations. If you have any questions specific to the California Life & Health Insurance Guarantee Association, you may want to contact them directly as they are located in Los Angeles. As to the specific long-term care insurance company (which we never represented but you keep calling and emailing me about) that is currently under state rehabilitation you may want to check withPennsylvania Department of Insurance on their status.
Next week you can look forward to my comments on what I believe will be the long-term care insurance industry’s next great fire sale and why the best time to be selling traditional long-term care insurance is NOW!