“Genworth move could signal big shift in distribution of long-term-care insurance,” by Greg Iacurci,

“Genworth Financial Inc.‘s recent decision to halt sales of individual long-term-care insurance policies through brokers and agents and just go directly to consumers could represent an emerging trend among insurers. … If more insurers turn to direct-to-consumer sales, brokers would find themselves cut out of transactions. The National Association of Independent Life Brokerage Agencies said it was ‘deeply concerned about [Genworth’s] course of action.’ Genworth officials said the suspension, which is indefinite, is primarily due to the company’s low credit ratings, which advisers use to assess the probability a company will be able to pay future benefits. The decision reflects both ‘the realities our company is facing today as well as our efforts to retool our business for the future,’ said Ms. Westermann.”

LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):

More turmoil and disruption. Jesse Slome of AALTCI concluded “Sometimes industries need to undergo a seismic shift in order to reemerge. Often that shift takes quite some time.” We can catch the pulse of the industry at the ILTCI conference beginning March 24 in Chicago.