(Hartford, CT) February 6, 2006 – The Long Term Care Insurance industry is maturing but still searching for sustained profitability as it works to market a complicated product offering, according to a new study by Conning Research and Consulting, Inc.
“Long Term Care Insurance has begun to break out of its limited distribution network, and is increasingly being understood to be part of a financial planning and lifestyle planning program, which may well be the path to sustained profitability,” said Stephan Christiansen, director of research at Conning Research & Consulting. “Yet the Long Term Care Insurance industry is sorting through a number of issues, including product and actuarial complexity, high producer compensation, and evolving consumer perceptions.”
The Conning Research study, “Long-Term Care Insurance: Opportunity Knocking-Again?” outlines recent industry performance and presents the emerging issues that must be addressed before long term care insurance can take its place as a financially sound and consistently profitable product.
“Long Term Care Insurance is now a $6.7 billion industry with a five-year compound annual growth rate of 17% through 2004,” said Jim Smith, analyst at Conning Research & Consulting. “However, almost half of that growth has been fueled by rate increases, and new sales have begun to decline steadily. The industry continues to seek the right combinations of product innovation and distribution to respond to the demographic opportunity.”
“Long-Term Care Insurance: Opportunity Knocking-Again?” is available for purchase from Conning Research & Consulting, Inc., by calling (888) 707-1177 or by visiting the company’s web site at www.conningresearch.com
About Conning Research & Consulting, Inc.
Conning provides insurance industry analysis to insurers and industry stakeholders. The Conning name has represented excellence in independent insurance industry research for more than 90 years. As a result of its wealth of experience and intimate knowledge of the insurance industry, Conning understands industry challenges and opportunities and provides in-depth insights and analyses on a wide range of industry products and issues. Conning is headquartered in Hartford, CT.