Genworth CEO Emphasizes Commitment to Long Term Care Insurance Industry
Genworth President and CEO Tom McInerney is reaffirming the company’s commitment and new approach to the Long Term Care Insurance industry.
Confident in Market
In a recent short video, McInerney spoke of the excitement within Genworth about the Long Term Care Insurance business and their confidence moving forward after completing their in-depth review of the industry in 2013. The company believes that the potential for a good market exists within the industry and they plan to strengthen their position as a leader and top provider by using a three-part strategy.
Genworth’s Three Part Strategy
The first part of the strategy is raising rates on policies that were issued before the year 2000 and are, at this point, very unprofitable. Genworth is looking to increase premiums on those policies in order to get close to break even. So far, the company is pleased with how many of those plans have been approved by regulators.
The second part of the strategy is to be more proactive with their newer policies. Rather than wait several years to seek rate increases, Genworth is looking for smaller increases more frequently. They are more manageable for the consumer and better for business.
The third and final part of the strategy is ensuring regulators review and approve new products quickly. Those new products will have a better balance of cost and benefits and will be strictly underwritten.
Future of Long Term Care Insurance
McInerney seems enthusiastic about the Long Term Care Insurance business and has said many times that he believes Genworth can help lead the way in the industry now that they have figured how to better manage the policies. Predicting interest rates, lapse rates, mortality, and morbidity has posed problems for many insurers, but Genworth now understands the difficulty of accurate prediction and has turned to this model for future success.
Several of the larger Long Term Care Insurance providers exited the market in recent years, but Genworth is committed to helping expand the market and continue to provide high quality Long Term Care Insurance to consumers in need of coverage for the high costs that are associated with this type of care.
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