Metlife Inc. (NYSE:MET) said on Thursday that it was discontinuing the sale of new Long-Term Care Insurance (LTCI) business after an extensive review of its business. The company will stop new applications for LTCI as of December 30, 2010 and will stop new enrollments into existing group and multi-life LTCI plans. The LTCI market has seen a number of insurers exit the market in recent years as policy holders are living longer and are generating more claims than initially anticipated. As part of the announcement, MetLife stressed that current insured individuals can continue to make coverage changes per the terms of their policy or certificate, including inflation protection offers and requests to increase or decrease coverage.
“MetLife remains committed to our current LTCI policyholders and certificateholders and will continue to ensure that they receive quality service, particularly when needed most – at time of claim,” says Jodi Anatole, vice president, Long-Term Care Products, for MetLife. “While this is a difficult decision, the financial challenges facing the LTCI industry in the current environment are well known.”