Insurers may be struggling to write long-term care insurance (LTCI) of any kind in this age of negative-yield bonds, but the underlying demand for true group long-term care insurance (LTCI) seems to be holding steady, according to an executive in the group market.
Brian Harrington, a group LTCI sales leader at Genworth Financial Inc. (NYSE:GNW), says he continues to see room to expand group LTCI sales.
“It’s an exciting place to be right now,” Harrington said. “We have not seen any slowdown in new quotes. I would say our activity is stronger this year.”
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Harrington said he has not heard many employers, or workers, mention the challenges that have been facing LTCI issuers recently. Instead, he said, the major barrier to employee take-up continues to be prospects’ lack of understanding of their need for private insurance.
“There are a lot of misconceptions out there,” he said.
The typical sponsors continue to be colleges, universities, law firms, and other employers with a high percentage of mature, educated workers. Take-up rates for younger workers and tech company workers are about the same as always, and general LTC planning awareness levels seem to be about the same, Harrington said.
“Our challenge has been how to bump up that education effort,” he said.
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