Insurers may be leaving the private long-term care insurance (LTCI) market partly because of states’ efforts to regulate LTCI premium changes.
Analysts in the New York office of Fitch Ratings have given that assessment in a commentary on the news that Prudential Financial Inc., Newark, N.J. (NYSE:PRU), is ending sales of individual LTCI coverage.
Prudential is keeping its group LTCI business.
Many LTCI insurers were over-optimistic when they originally priced older policies, and unusually low interest rates are keeping them from correcting pricing errors with investment earnings, the analysts say.