Client Alert July 10, 2023
On June 7, 2023, the New York State Department of Financial Services (“NYDFS”) issued a report entitled, “Long Term Care Insurance: Looking Back and Thinking Ahead” (the “LTC Report”).1 The regulator states that the need for affordable long-term care (“LTC”) insurance2 is “perhaps more important than it has ever been” due to our aging population, which has increased demand for LTC services, and the rising cost of such services. The LTC industry is facing continued challenges for several reasons, including higher premiums, low lapse rates, and the departure of many LTC insurers from the market, while some of the remaining carriers face financial difficulty, threatening their ability to pay future benefits. The LTC Report is the product of Superintendent Adrienne A. Harris’ effort to analyze the LTC insurance market with the following goals in mind: (i) to understand why the market is in a state of crisis on a nationwide basis, and (ii) to create a viable path forward for aging consumers who need LTC insurance benefits and insurance companies that have incurred significant losses as a result of offering these products.
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