Elevated investor curiosity in LTCI might assist result in a rise in new stand-alone LTCI coverage gross sales.
However the truth that the deal included insurance policies apart from LTCI insurance policies may affirm the observation of Ameriprise executives that reinsurers are nonetheless cool towards LTCI blocks and wish the direct writers to bundle LTCI insurance policies with different varieties of insurance policies.
The LTCI block: The LTCI insurance policies concerned within the RGA reinsurance deal had been written by Manulife’s John Hancock unit.
The insurance policies had been offered after 2006. John Hancock is retaining 25% of the chance related to the block.
The historical past: John Hancock and different U.S. insurers as soon as raced to write down new stand-alone LTCI insurance policies, based mostly on a perception that the child boomers would wish a strategy to pay for care in outdated age.
John Hancock and plenty of different direct writers suspended gross sales after studying that that they had gotten assumptions about how the merchandise would work flawed and had underpriced the merchandise.
