For a significant portion of human existence, most believed the earth was a flat disk floating in a body of water. Lack of perspective generally leads to incorrect conclusions and undesirable results. Even after Aristotle provided observational proof that planet earth was spherical (330 BC), it took centuries for many of our ancestors to accept this reality. Today the pseudo-science latter-day advocates of flat earth theory can be readily found on the internet. And of course, lest we forget, if one does not accept the truth of some new philosophy or concept, we are branded as a “flat-earther.”
Now that we have more credible data regarding the long-term care risk, is our world flat or round?
What have we learned from the claims history we now have? Generally, we expected the worst and were mostly right.
- We probably knew the desire for sales could lead to an underpriced attack on a virgin market.
- We stumbled into a category of products totally unprepared for the affection consumers would have for it once purchased.
- We followed the money and ended up with what can fairly be described an exclusively “elitist” option.
- Consensus continues to be elusive regarding the basic question: “How much is enough?”
- While the burgeoning combo market was fueled by regulation and legislation, we probably could have known a contingent approach to a marginal risk was more appropriate than a product designed to be all things to all people.
Does the long term care insurance industry have its share of flat earth thinking that needs to be reconsidered?
Click here to read more, originally published in the September 2019 edition of Broker World Magazine.