This just shows what a poor CEO and a rubber stamp board can do to a great company. I am a GE shareholder, but it is a very small part of my holdings. I bought GE stock several years ago because they have a manufacturing plant in my town. I have seen how bad their underwriting was on their LTC product. I saw people with severe health issues being written and coached by out of town agents selling them LTC. Their Genworth LTC policyholders need to prepare for large premium increases. This is not just a problem for GE’s LTC. but that sector as a whole.
They used the “lapse” rate for life insurance to price their LTC product. Unfortunately seniors did keep the product, so it was underpriced. Bean counters strike again and the marketing department said but we will get market share and be ok, and agents said it’s too expensive to sell.
Liberty Mutual just got out of the Life Business. Life used to be a profitable line for most companies. Were they afraid there would be too many Opiod deaths with their policyholders or too many distracted driving deaths?
This just shows what a poor CEO and a rubber stamp board can do to a great company. I am a GE shareholder, but it is a very small part of my holdings. I bought GE stock several years ago because they have a manufacturing plant in my town. I have seen how bad their underwriting was on their LTC product. I saw people with severe health issues being written and coached by out of town agents selling them LTC. Their Genworth LTC policyholders need to prepare for large premium increases. This is not just a problem for GE’s LTC. but that sector as a whole.
Should have stayed in manufacturing only. They also shouldn’t have sent jobs to China.
They used the “lapse” rate for life insurance to price their LTC product. Unfortunately seniors did keep the product, so it was underpriced. Bean counters strike again and the marketing department said but we will get market share and be ok, and agents said it’s too expensive to sell.
Liberty Mutual just got out of the Life Business. Life used to be a profitable line for most companies. Were they afraid there would be too many Opiod deaths with their policyholders or too many distracted driving deaths?