The purpose of this study is to provide a systematic understanding of the growth and development of the LTC insurance market with a particular focus on the reasons why companies both entered and exited the market. We will characterize the market and how it has changed over time in terms of its size, product offerings, consumer characteristics, regulatory framework, and financial performance. We will also focus on firms' initial motivations for entering the market, their expectations and experience, and ultimately why so many exited the market.
Specifically, we provide information on the following issues or questions:
What were the primary motivations and expectations of firms when they began providing LTC insurance?
How has the market changed in terms of product, pricing, consumer profile, regulatory environment, supplier characteristics, aggregate market characteristics and performance indicators?
What are the primary reasons why companies who actively marketed LTC insurance ceased selling policies?
What would be required for such companies to consider re-entering the market?
By addressing these issues we intend to paint a picture of the industry in terms of its historical growth and development, as well as its current and future challenges.