Market May Need to Reinvent LTCI
- Thread starter Arthur Rudnick
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"The current products just don't work."
-Eric Cioppa, Maine Insurance Commissioner
“You're going to price yourself out with this product. We'll find other solutions. That's what happens. The market corrects itself. I don't know if we need what you have today. You need to come up with something else.”
- Jillian Froment, Deputy Director at the Ohio Department of Insurance
Pretty strong words spoken to an LTCI audience by state insurance regulators
-Eric Cioppa, Maine Insurance Commissioner
“You're going to price yourself out with this product. We'll find other solutions. That's what happens. The market corrects itself. I don't know if we need what you have today. You need to come up with something else.”
- Jillian Froment, Deputy Director at the Ohio Department of Insurance
Pretty strong words spoken to an LTCI audience by state insurance regulators
Great message to send to insurance company marketers:Well, I guess this will lead to the design of more smoke and mirror policies.
And now we are introducing Leading 70's Singer Songwriter Performance Lottery LTC
"And if WAMO is playing Danny's Song by Loggins and Messina at 3:12 PM
on your policy anniversary we will credit 15% compound interest to the daily benefit but only if our General Account credits 5% interest which will be based off of Loggins and Messina's record sales in the cut out bin at Jim's Records in Squirrel Hill. Otherwise your inflation protection will be based off of the daily number drawn in your state lottery on your policy anniversary multiplied by 0.032."
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Arthur Rudnick
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Originally posted by ltcadviser
Jack,
Are you sure that's how it works?
Jack,
Are you sure that's how it works?
For over a year, McInerney has been saying we need regulatory reform that will allow the creation of new types of products. People on this forum mocked his suggestion.
Since the Rate Stability Regulations require that every new policy form be priced more conservatively than the previous, the regulators are right when they say that "you're going to price yourself out with this product." No kidding! The insurers are just following the regulations!
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Arthur Rudnick
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originally posted by Mr_Ed
And, what type of new LTC product would McInerney like to create?
And, what type of new LTC product would McInerney like to create?
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one that has regulations regarding premiums that are similar to the regulations for medicare supplements.
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Arthur Rudnick
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originally posted by Mr_Ed
I'm not sure I understand.
Are you saying that the feds or each state's DOI should dictate the design, benefits & price for each LTC policy?
Therefore, each policy will have the same benefits from every company and will be priced the same.
That being the case, we'd all be out of a job, wouldn't we?
That's not going to happen in my lifetime.
I'm not sure I understand.
Are you saying that the feds or each state's DOI should dictate the design, benefits & price for each LTC policy?
Therefore, each policy will have the same benefits from every company and will be priced the same.
That being the case, we'd all be out of a job, wouldn't we?
That's not going to happen in my lifetime.
That's not what I'm saying, Arthur.
Insurers that sell Medicare supplements can have lower, more frequent changes to premiums based upon experience.
That's what McInerney has been saying he wants LTCi to be able to do... to have premium structures that are more like medicare supplements or any other type of health insurance.
But, you can't do that with LTCi under current LTCi regulations, especially in states which have enacted the Rate Stability Regulation.
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