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.