The announcement last week by Genworth Financial withdrawing from sales of long-term care insurance through brokers was addressed today in a special industry call hosted by the director of the American Association for Long-Term Care Insurance (AALTCI).
"This should not be an unexpected transition because the Internet has changed the way consumers shop for and purchase everything, including insurance," commented Jesse Slome, director of AALTCI who shared his insights on the important change with leading long-term care insurance professionals. "While the Genworth announcement was somewhat cryptic in terms of outlining their future efforts, I expect they will ultimately undertake efforts to market directly to consumers. If they are successful, I would expect others to follow suit."
Slome noted the transition to direct-to-consumer efforts were already a significant part of sales in other insurance lines. "My 93-year-old mother recently bought her car insurance directly online so assuming seniors won't use the Internet to purchase insurance is a mistake," Slome cautioned the group. "Agents are going to have to find ways to compete or risk going the way of travel agents and video stores."
"Unlike some insurance products which are naturals for online sales, long-term care insurance can be a rather complicated product and sale, requiring a higher degree of consumer education," Slome noted. "This is the competitive positioning advantage agents still have - the ability to compare multiple products from a variety of companies."
Sales of traditional long-term care insurance have declined significantly over the past decade. "Companies that market directly to consumers will have to spend millions of dollars on awareness campaigns," Slome predicts. "Consumers who use the Internet will want options and seek alternatives online, so an online presence will be essential for anyone who hopes to be in the business going forward."
The American Association for Long-Term Care Insurance advocates for the importance of long-term care planning. The organization connects consumers with knowledgeable professionals who are independent advisors. Consumers seeking long-term care insurance quotes and cost comparisons should visit the Association's website at www.aaltci.org or can call the organization's national headquarters at 818-597-3227.
The American Association for Long-Term Care Insurance and the American Association for Medicare Supplement Insurance advocate for the importance of planning and support insurance professionals nationwide. Jesse Slome, founder and executive director of the organizations, is a leading consumer advocate and author of numerous consumer and professional guides focused on retirement and insurance planning that have been published by governmental agencies and private organizations.