Close Close
ThinkAdvisor

Life Health > Life Insurance

Fitch: LTCI Remains a Drag on Life Insurers (BenefitsPro.com)

By Staff Writer

X
Your article was successfully shared with the contacts you provided.

The long-term care insurance market continues to be plagued by adverse claims experience and poor overall results, which has led to rate instability, insurer solvency concerns, and market exits by several major insurers, Fitch Ratings said Wednesday.

Fitch announced a new report, which analyzes the outlook for the LTC industry.

“Fitch views long-term care insurance as one of the most risky products sold by U.S. life insurers,” said Managing Director Douglas Meyer. “In addition to ongoing concerns over adverse claims experience on older legacy LTC business, the current low interest rate environment presents further challenges to LTC insurers.”

The recent exit of a number of major insurers from the LTC market improves the outlook for remaining LTC writers to further strengthen pricing on new business and help facilitate the approval of in-force premium rate increases, which should have a positive effect on aggregate industry results over time.

Read the story. 

NOT FOR REPRINT

© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.