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Underwriters See Rosy Future for LTC Insurance

Wed, 11/29/2000 - 12:00am — Karen Stevenson
Description: 

Tillinghast-Towers Perrin told members of the Health Insurance Association of America (HIAA) about results of a recent study they did about insurance products for seniors. They said that many organizations believe that LTC is a product that must have a bright future ? it just hasn?t been fully realized. Relatively high premiums combined with low perceived need is being addressed on several fronts. Insurers are seeking ways to penetrate the market by combining or integrating LTC benefits with other coverages. Many respondents felt that the above-the-line tax deduction the Congress is considering would dramatically increase the public?s appetite for LTC products. But respondents also noted that state-by-state regulations, a lack of perceived need or understanding, and difficulty with distribution channels all present significant barriers to LTC products taking hold. Many insurers indicated they are leaning towards developing integrated products that provide seamless care across settings and providers?and which can take coverage from middle age through end-of-life. The hope is that integrated products such as life insurance with LTC or health plus LTC will respond better to diversifying market demand than today?s siloed offerings.

Tillinghast-Towers Perrin told members of the Health Insurance Association of America (HIAA) about results of a recent study they did about insurance products for seniors. They said that many organizations believe that LTC is a product that must have a bright future ? it just hasn?t been fully realized. Relatively high premiums combined with low perceived need is being addressed on several fronts. Insurers are seeking ways to penetrate the market by combining or integrating LTC benefits with other coverages. Many respondents felt that the above-the-line tax deduction the Congress is considering would dramatically increase the public?s appetite for LTC products. But respondents also noted that state-by-state regulations, a lack of perceived need or understanding, and difficulty with distribution channels all present significant barriers to LTC products taking hold. Many insurers indicated they are leaning towards developing integrated products that provide seamless care across settings and providers?and which can take coverage from middle age through end-of-life. The hope is that integrated products such as life insurance with LTC or health plus LTC will respond better to diversifying market demand than today?s siloed offerings.