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Follow on Google News | Genworth Long Term Care Insurance Acting Like A Leader Says AALTCIJesse Slome, director of the American Association for Long Term Care Insurance praised Genworth President Tom McInerney for comments made during the company's investor call.
Speaking to a group of industry leaders, Slome remarked that yesterday's Genworth call to investment analysts may mark the turning point for the industry. "People have been talking amongst themselves about the need for change for years," Slome notes. "Genworth's McInerney raises the discussion to a new level yesterday articulating clearly why change must occur and sharing the company's commitment to take a leadership role in driving the changes essential to the industry's growth and survival." "Change is vital and the time is now," Slome declared, noting that long-term care insurance was first created and offered in the 1970s and 1980s. "People have been anticipating the industry's demise for years without understanding the consequences," The director of the American Association for Long Term Care Insurance particularly cited McInerney for his comment during the investor call, "But going forward, I think the major change, and I think Genworth is going to lead on this, will be to move to a process that both the industry, as well as regulators, get more comfortable with the fact that you have to allow for the re-rating annually to take into account what may happen over the 25-, 30-year duration of the policy," McInerney stated. "It is impossible to price a product today and predict economic and health changes over the next 30 years," Slome cites, "which is exactly what current regulation requires for long term care insurance. Consumers understand and accept regular price increases and even seniors know their Medicare cost goes up each year. An identical approach not just makes sound financial sense but will expand the private long term care insurance market by reducing the cost to purchase at younger ages." For additional information or for no obligation long term care insurance costs call the organization at (818) 597-3227 or visit their website at http://www.aaltci.org. End
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