Guardian exits the LTC market...

[dgoldenz]

...as of 12/31/11 from what I hear through the grapevine. So much for the "it's better to pay more for a mutual company" argument. Wonder what NYL and NWM agents will use as an argument for why they're better than Genworth/Hancock/MOO now...

 

[samclem]

...as of 12/31/11 from what I hear through the grapevine. So much for the "it's better to pay more for a mutual company" argument. Wonder what NYL and NWM agents will use as an argument for why they're better than Genworth/Hancock/MOO now...

I'm not sure the buying public will make a distinction between mutuals and stock insurers. What we see is another LTC insurance company pulling out and probably leaving present policyholders without good service.

People buy insurance to decrease uncertainty, not to add another source of it. LTCi is already an expensive product that rightfully encounters a lot of sales resistance. This latest news won't help no matter what brand is being pushed.

 

[dgoldenz]

I'm not sure the buying public will make a distinction between mutuals and stock insurers. What we see is another LTC insurance company pulling out and probably leaving present policyholders without good service.
People buy insurance to decrease uncertainty, not to add another source of it.

I agree, but I often hear from people that it's "safer" to buy from a mutual company than a stock company, even though the premiums are usually much higher.

 

[FinanceDude]

...as of 12/31/11 from what I hear through the grapevine. So much for the "it's better to pay more for a mutual company" argument. Wonder what NYL and NWM agents will use as an argument for why they're better than Genworth/Hancock/MOO now...

Because they are.........NYL and NML actually have funded their policy reserves for claims.........

 

[chinaco]

The LTC market will probably windup concentrated in a couple of companies (scale). There is no doubt a lot of anti-selection occurs. Plus medical costs are skyrocketing and unpredictable. The insurance industry shuns risk.... an oxymoron