Abstract
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Table of Contents
- Scope and Themes
- What you need to know
- Scope of this report
- Abbreviations and terms
- Abbreviations
- Terms
- Executive Summary
- Industry snapshot
- Demographic trends shape market for LTCi
- LTCi policies evolving to respond to customer needs
- Consumer attitudes and lack of knowledge impede sale of LTCi
- Government policies impact LTCi industry
- Market size and segmentation
- Competitive marketplace
- Agent attitudes towards selling LTCi
- Market Drivers and Future Trends
- Growing need for LTCi by an aging population
- Figure 1: Percentage of U.S. population aged 65 and over, 1900-2000
- Figure 2: Percentage of U.S. population aged 65 and over, 2000-50
- Figure 3: U.S. population: projected increase by age group, 2005-20
- Figure 4: Balance of men and women for the population aged 65 and over by age, percentage female, 2000
- Figure 5: Parent support ratios (number of people aged 85+ per 100 people aged 50-64), 1960-2050
- Chronic conditions in elderly population
- Figure 6: Prevalence of selected chronic conditions in people aged 65 and over by sex, 1999-2000
- Figure 7: Disability prevalence and the need for assistance by age, 2002
- Lifestyles and resources of the U.S. elderly population
- Figure 8: Personal money income for population aged 65 and over by source, percentage distribution, 2001
- Figure 9: Social Security recipients aged 65 and over by relative importance of Social Security to total money income, percentage distribution, 2001
- Figure 10: Median net worth and median net worth excluding home equity for households by age of householder, 2000
- Fewer spouses available to provide care as people age
- Figure 11: Marital status of the population aged 65 and over by age and sex, percentage distribution, 2003
- Figure 12: Living arrangements of the population aged 65 and older, percentage, 2003
- Figure 13: Chances of entering a nursing home at some point in life, 2004
- Almost half of LTC patients are under age 65
- Over 90% of nursing home population is aged 65 and over
- Figure 14: Nursing home population by age, 2000
- LTCi--institutional vs. home care and costs
- Figure 15: Long-term care expenditures for eight leading LTC insurers by type of care, 2006
- Figure 16: Long-term care expenditures for aged Americans, by source of payment, 2004
- Caregiving responsibilities adversely impact worker productivity
- LTC services are costly
- Figure 17: Length of time nursing-home residents stay in such facilities
- LTC insurance is costly
- Figure 18: 2006 National Long-Term Care Insurance Price Index, 3-year benefit period
- Figure 19: Percentage of applicants who qualify for good health discounts, 2006
- Consumer attitudes and awareness present obstacles
- Figure 20: Confidence in ability to pay for long-term care, 2004
- Figure 21: Ability to pay for nursing home care, 2004
- Characteristics of the ideal LTCi client
- The LTCi industry reacts to consumer concerns
- Insurers can raise prices on current policyholders, but this creates image problems
- Some believe LTCi products are too complex
- LTCi and public financing
- Figure 22: Medicare home health vists per user, 2000-05
- Figure 23: Primary payer for nursing home residents, 2005
- Medicaid reimbursement rates are exceptionally low
- Figure 24: Long-term care rates, 2006
- Medicaid tightens eligibility restrictions
- States promoting LTCi
- U.S. Department of Health Services introduces LTCi campaign
- Private LTCi benefits public policy
- Figure 25: Annual percentage growth in Medicaid long-term care spending, 2000-05
- Tax aspects of LTCi
- Future shortages of LTC workers will impact claims
- Market Size and Segmentation
- Market size
- Figure 26: Long-term care insurance earned premiums and number of covered lives, 1995-2004
- Recent and projected sales trends
- Individual purchasers vs. purchase in the workplace
- Figure 27: Long-term care insurance products, by percentage of policies sold and average age of buyer, 2002
- Figure 28: Workers with access to long-term care insurance in private industry, 2003-05
- Purchasers are getting younger
- Competitive Landscape
- Overview of LTCi marketplace
- LTCi industry undergoing consolidation
- Number of companies in the LTC market
- Figure 29: Companies filing long-term care insurance Form B for 2004 reported year
- Market share by company
- Figure 30: Largest long-term care insurance providers, ranked by number of total long-term care policyholders in 2006
- LTCi products
- Innovative LTCi policy features
- Other recent developments
- Figure 31: LTC companies' product offerings, 2007
- Addressing inflationary risk
- Individual LTCi trends
- Figure 32: Distribution by benefit increase feature, 2004 and 2005
- Figure 33: Distribution of individual LTCi policies by underwriting rate class, 2004 and 2005
- Group LTCi trends
- LTCi for federal employees
- LTCi sales channels
- Figure 34: How individual long-term care insurance policies are sold, through 2002
- LTCi carriers offer support/partnership services to assist agents
- The LTCi Agent Survey
- Summary of consumer survey
- What would attract agents to sell more?
- What providers are agents using?
- How much are they currently selling?
- What do they think are the benefits?
- Is public perception helping?
- Would assistance from specialized agents increase sales?
- Agent influences to sell (more) LTCi
- Figure 35: Agent influences to sell (more) LTC insurance, by age, 2007
- Figure 36: Agent influences to sell (more) LTC insurance, by education, 2007
- Figure 37: Agent influences to sell (more) LTC insurance, by employment status, 2007
- Figure 38: Agent influences to sell (more) LTC insurance, by census region, 2007
- Companies represented by surveyed agents who sell LTCi
- Figure 39: Companies providing LTC products, by age, 2007
- Figure 40: Companies providing LTC products for sale, by education, 2007
- Figure 41: Companies providing LTC products for sale, by employment status, 2007
- Figure 42: Companies providing LTC products for sale, by census region, 2007
- Percentages of agent income from LTCi
- Figure 43: Percentage of agent income from LTC insurance products, by age, 2007
- Figure 44: Percentage of agent income from LTC insurance products, by education, 2007
- Figure 45: Percentage of agent income from LTC insurance products, by employment status, 2007
- Figure 46: Percentage of agent income from LTC insurance products, by region, 2007
- Agent perceptions of the most important benefits of LTCi
- Figure 47: Agent perception of most important benefits of LTC insurance, by age, 2007
- Figure 48: Agent perception of most important benefits of LTC insurance, by education, 2007
- Figure 49: Agent perception of most important benefits of LTC insurance, by employment status, 2007
- Figure 50: Agent perception of most important benefits of LTC insurance, by census region, 2007
- Clients' opinions of long-term care insurance before talking with agent
- Figure 51: Clients' preconceptions of LTC insurance, by age, 2007
- Figure 52: Clients' preconceptions of LTC insurance, by education, 2007
- Figure 53: Clients' preconceptions of LTC insurance, by employment status, 2007
- Figure 54: Clients' preconceptions of LTC insurance, by census region, 2007
- Current usage of specialized agents
- Figure 55: Agents' cooperative arrangements with specialized agents, by age, 2007
- Figure 56: Agents' cooperative arrangements with specialized agents, by education, 2007
- Figure 57: Agents' cooperative arrangements with specialized agents, by employment status, 2007
- Figure 58: Agents' cooperative arrangements with specialized agents, by census region, 2007
- Attractiveness of using company-sponsored agents/specialists
- Figure 59: Agents who believe they would sell more LTC insurance if assisted by company sponsored agent/specialist, by age, 2007
- Figure 60: Agents who believe they would sell more LTC insurance if assisted by company sponsored agent/specialist, by education, 2007
- Advertising and Promotion
- Company strategies
- Bankers Life and Casualty
- Genworth
- Guardian Life
- John Hancock/Manulife Financial
- Lincoln Financial Group/Lincoln National Corp.
- LTC Financial Partners LLC
- Metropolitan Life (MetLife)
- Mutual of Omaha/United of Omaha
- New York Life
- Unum
- Appendix: Industry Associations
- Appendix: Advertising and Promotion
- Figure 61: Genworth Life Insurance Company acquisition mailing, january 2007
- Figure 62: Genworth Life Insurance Company of New York acquisition mailing, October 2006
- Figure 63: Genworth Life Insurance Company of New York acquisition mailing, October 2006
- Figure 64: Space Coast Credit Union/CUNA Mutual Life Insurance Company acquisition mailing, December 2006
- Figure 65: AARP/MetLife acquisition mailing, October 2006
- Figure 66: Consumer' s guide to understanding long-term care and long-term care insurance from Bankers Life and Casualty Company
- Figure 67: Prudential Financial print advertisement, November 2006
- Figure 68: Long term care answer guide from Mutual of Omaha Insurance Company, acquisition mailing, October 2006
