Thursday, November 11, 2010

Latebreaking LTCi Market Update

From FoIB Jeff M:

"MetLife Inc. says it will no longer sell new long term care (LTC) insurance policies in either the individual or group markets after the end of the year."

Citing "the financial challenges facing the LTCI industry in the current environment," the carrier is folding up and walking away. The "good" news is the carrier will continue to service existing clients (for now - we'll see how that goes).

Nothing, however, happens in a vacuum, and this move buy a carrier of this size will have ripple effects in the market. It also puts additional pressure on the carriers "left behind:" on the one hand, it's an opportunity to pick up additional market share; on the other, it doesn't bode well for the long term health of the industry.

Or maybe it does: after all, Darwin's Law isn't just for people.
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