Long Term Care - Insurance

Genworth is one of two very large players left in the industry; the other is John Hancock. Each provides long-term care insurance to four times as many people as are covered by the next-largest competitors, according to the American Association for Long Term Care Insurance
Indeed, the field has winnowed dramatically over the past couple of years, with major players like Metlife, Prudential Financial, Unum Group and Allianz no longer writing new policies.
Right now, Genworth is sending this message: Long-term care insurance is going to be more expensive, and tougher to get.
Thomas McInerney, the company's chief executive, told investors recently Genworth is "conducting an intense, very broad and deep review of all aspects of our insurance business." He said he hoped to improve Genworth's long-term care insurance business by getting state insurance regulators to approve big rate hikes on old policies written before 2001, and smaller increases on newer policies.
And, he hoped to introduce new policies with higher initial prices and tighter underwriting - meaning, they'll only take on healthier customers.
Genworth and other  underwriters have already put the brakes on the number of policies they write, as they try to focus on the most profitable business, says Jesse Slome, executive director of  "People assume insurers are interested in writing as many policies as they possibly can, but they really only want relatively healthy people, because the policies are priced for that."
Some observers worry that Genworth could exit the long-term care insurance business altogether. But a Genworth spokesman said the company is committed to the business, noting the country's age wave and the increasing strain on Medicaid, where state budgets increasingly are devoted to funding .