Hannover Life Reassurance Co. of America, the North American life and health reinsurance subsidiary of Hannover Re Group, and the Insurance Administration Services division of Univita Health, a long-term care administrator, have entered into a strategic alliance, which is intended to deliver a scalable risk management solution that includes product design assistance, underwriting services, claims management and reinsurance.
Rising nursing home costs and increased need for support of an aging population are driving a trend for hybrid products, said Hannover Life Reassurance Co. of America (HLR America). Despite these rising costs and an increasing consumer need, less than 3 percent of the population has LTC protection, and sales of stand-alone long-term care (LTC) policies are declining. Many insurers now offer hybrid products that integrate life insurance death benefits, cash value protection features and LTC coverage.
HLR America’s actuarial and life underwriting strengths will combine with Univita Health’s LTC administration experience to provide a risk management solution to direct insurers, HLR said. HLR America maintains a database of insured mortality data, which clients can tap into for additional knowledge and insight when refining underwriting criteria or making pricing and product design decisions.
