UNUM to drop new sales of group LTCi

Just got this from Unum,

"After a careful and comprehensive review, we have decided to end sales of new group long term care contracts. Although we recognize there is a market need for products to help individuals pay for long term care expenses, current economic, pricing and risk factors make it impossible for us to meet our financial and risk management objectives.

Unfortunately, we are not the only insurer to reach this conclusion as many others have now exited the long term care market given the combination of historically low interest rates and the uncertainty of risk and pricing trends.

The decision to end new group long term care sales is in the best interest of all of our policyholders, as it allows us to sharpen our focus on the markets and products that provide the greatest long-term opportunity for our company and are more compatible with our financial and risk management objectives."

The key thing here is that this is another carrier in the last few years (prudential and MetLife also left too) that has decided to stop selling NEW long term care insurance policies. The reason is Obamacare and the federal reserve. Note in the comments above they reference "historically low interest rates and uncertainty of risk and pricing trends".

The govt. is squeezing out competition and a very much needed product in an aging society (LTC). They are pushing other carriers to either become the monopoly or to get out of it altogether.

THEN when the public sentiment is frustrated enough about the lack of a vehicle to protect themselves the govt. will ride in and save us. More govt. more control less economic growth.