Hannover Re’s US subsidiary and LTCG’s Strategic Partnership Expands to Support Life/LTC Hybrid Products with a Total Risk Management Solution
EDEN PRAIRIE, Minn. & ORLANDO, Fla.--(BUSINESS WIRE)--Hannover Life Reassurance Company of America (Hannover Re America) expands its strategic partnership with LTCG, which was formerly the long term care insurance administration services division of Univita Health.
“Together our two organizations assist direct insurers with every aspect related to LTCI hybrid products from product development to implementation”
Together Hannover Re America and LTCG are providing life insurers with a scalable, total risk management solution for long term care insurance (LTCI) hybrid products, which includes both product design and pricing assistance, underwriting and risk management services, claims processing and reinsurance. “Together our two organizations assist direct insurers with every aspect related to LTCI hybrid products from product development to implementation,” said Peter Schaefer, President and CEO of Hannover Re America. “This partnership leverages the mortality and morbidity expertise of both organizations.”
“Hybrid policies are hot right now and have become increasingly popular for insurers looking to expand their market and deliver a high value alternative to costly stand-alone LTCI,” said Peter Goldstein, CEO of LTCG. “The hybrid structure combines a long term care benefit with life insurance or an annuity, providing the insured a real value if their LTC benefit is not utilized and effectively addressing the number one objection to buying a stand-alone LTC policy.”
The combo product fills a previously unmet demand in the life market that is driven by an aging population and rising nursing home costs. As many as 7 out of 10 adults over the age of 65 will become cognitively impaired or unable to complete at least two activities of daily living (e.g., bathing, dressing or eating) and may require nursing home care. The average cost of a private room in a nursing home is over $90,000 per year. Despite these rising costs, less than 3% of the population has LTC protection.
LTCG is a leading provider of business process outsourcing to the insurance industry, with an emphasis on supporting long-term care products. LTCG serves over 50 insurers, including all of the top ten carriers in the long-term care market. The company offers complete administrative support including application processing, underwriting, policy administration and claims and care management as well as health and functional assessments. In addition, LTCG provides clients with unique insight about risk management built upon the industry’s largest database of long-term care underwriting and claims outcomes. For more information, visit www.ltcg.com.
About Hannover Re America
Hannover Life Reassurance Company of America (Hannover Re America), which is licensed and/or accredited in all 50 states and Puerto Rico, is the North American life and health reinsurance subsidiary of Hannover Re Group. Hannover Re, with a gross premium of around EUR 13 billion, is the third-largest reinsurer in the world. It transacts all lines of non-life and life and health reinsurance and is present on all continents with around 2,200 staff. HLR America is rated "AA-" by Standard & Poor’s and "A+" by A.M. Best. Additional information about the Company can be obtained from its web site at www.hlramerica.com.