With the announced exit of Allianz and Great American from the long-term care marketplace, which follows the exit of UNUM from the ILTC marketplace last year, consolidation in the long-term care insurance marketplace continues to occur. This consolidation, coupled with the economic downturn over the last year, creates an environment where advisors can (and should) re-evaluate their carrier/partner selection process.

Today, more than ever, there is a renewed emphasis on quality and value. Having been involved in recent conversations about Allianz, I can say that their departure from the LTC marketplace was predictable and expected.  Just a week before their announcement, an advisor asked why we had not quoted Allianz had not been quoted, and I replied that I believed their commitment to the LTC marketplace was uncertain.

Carrier departure from the LTC marketplace is not viewed positively; however, the exit of outlying carriers does create more opportunities for the industry leading carriers.  The top three writers of John Hancock, Genworth Financial, and Metropolitan Life continue to see growth in their LTC business, with sales increasing every quarter during 2009.  You will want to select carriers for your LTC insurance clients that are financially sound, and have demonstrated their commitment to the LTC marketplace.

There are reasons to be optimistic about the future of the LTC marketplace as consumers continue to place an increasing level of importance of asset preservation.  While the market for group long-term care solutions has lagged the individual market in 2009, the employer marketplace has begun to show signs of rebounding.

From a compliance standpoint, producer LTC Partnership training continues to surface as an issue for agents/advisors, especially this year as many advisors face their first LTC Partnership four-hour training renewal. Courses approved by the states for LTC credits may not be acceptable to the insurance carrier as satisfaction of the LTC Partnership training requirement. Agents that choose to complete the training have a marketing advantage to promote within the marketplace.

One thing will never change – the market will never stand still.  The time to market is now….

David B Hillelsohn is the brokerage manager for The Haslett Management Group, a long-term care insurance brokerage firm. He can be reached at 888-840-6977 or dhill[at]hmgltc[dot]com.