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September 27, 2010 at 02:01 PM
As part of our fifth annual LTCI Market Study, we ran an LTCI carrier report card revealing how producers feel about the carriers they’re appointed with.
This year, John Hancock ranked in the top five for each and every category, along with other big-name carriers. The company tied for first place in “best overall” with Genworth.
But then, the news came out about John Hancock’s planned 40 percent rate increase, and the comment forum turned sour.
“I appreciate the survey and the results that are posted,” said Dennis E. McCarty. “However, I am wondering if agents feel as compelled to work with John Hancock after a recent article I received stating a 40 percent increase in the premiums for existing insureds? This type of news is discouraging to me in marketing LTCI when even the ‘Big Boys’ haven’t a clue on the pricing of this product. I want to be proactive in LTCI, but how do we do that when we can’t be sure of the pricing issue”
Another producer chimed in with a similar sentiment.
“I also see Dennis’ point about the pricing, and I had also heard about the JH 40 percent increase,” said a producer who identified herself as Connie. “That is huge! Is it an effort to get people to drop their LTCI coverage,because it will surely result in that. LTCI coverage is expensive to begin with, although it is a valuable coverage to have. This product has struggled since it’s introduction, and now, with our economic woes, people are going to be even more hesitant to purchase something that they still consider to be a ‘luxury buy’.”
