Genworth Begins to File New Long-Term Care Insurance Policy

CareScout is starting by focusing on home care providers. The network now has arrangements with 422 home care providers in 49 states. Typical providers in the network provide 20% discounts off their usual prices, McInerney said.

CareScout service fees amount to about one-quarter of a discount, and the rest of the discount goes toward reducing a patient’s long-term care costs.

Genworth is now using the program to help its own LTCI insureds reduce their care costs. The company plans to begin offering the program to other insurers next year.

Other insurers have also announced several new products that combine long-term care benefits with life insurance policies or annuities.

CareScout Insurance: Genworth plans to write the new LTCI coverage through a new subsidiary, CareScout Insurance Company, that will be free from the costs associated with the old LTCI coverage.

Genworth registered CareScout Insurance in June, according to Virginia business entity records.

“Our upcoming individual product is designed with conservative assumptions and coverage limits to reduce the need for LTC premium increases in the future,” McInerney said.

Earnings: McInerney talked about the new LTCI product while briefing securities analysts on Genworth’s results for the third quarter.

The company reported $118 million in net income for the quarter on $1.9 billion in revenue, up from $60 million in net income on $1.8 billion in revenue for the third quarter of 2023.

The risk-based capital ratio, or solvency summary statistic, for the companies that wrote the in-force LTCI coverage increased to 317% at the end of the quarter. That was up from 291% a year earlier.