One takeaway from a recent Morgan Stanley analyst review of the life and annuity market is that stand-alone long-term care insurance (LTCI) is still in the Wall Street doghouse.
A team led by Nigel Dally based the report on what analysts from the firm have been hearing from life insurance investors.
The investors themselves may eventually need long-term care services, or to provide care for an elderly friend or relative, but they are not especially sympathetic to insurers’ efforts to figure out how to turn financing care into a commercial product.
The Morgan Stanley analysts cited “details around long-term care exposure” as a top investor concern.
Executives from Ameriprise, for example, have talked at length about how that company manages its closed block of LTCI policies and why managers believe the capital needs of that block will have no effect on shareholders.