Lapse rates on policies issued since 2002 have been higher than expected, but 41 states have approved rate hikes, and by 2017 - when the rate boosts are fully in place - all of the legacy policies will be back to breakeven.
Coming up in Q2 will be a new long-term care policy taking into account new lapse-rate assumptions.
Then there's the hire of Jim Boyle, former CEO of John Hancock Insurance. He's in charge of the long-term care division with a mandate to launch a new set of innovative products.
"What Americans don’t know is that medicare doesn’t cover disabled care. There are 150M Americans in the age range but only 74M are covered. There is a significant market opportunity."