Faegre Drinker LTCi Summit V

Faegre Drinker held their Fifth Annual Summit, in-person, at their imposing new offices in Chicago, IL. On Tuesday evening, October 18, 2022, the meeting kicked-off with an informal, fun, and engaging get-together at Pinstripes.

The overall format for the interactive meeting was selective, informative, and fast-moving. On Wednesday, after his welcoming remarks, Steve Serfass, partner, Faegre Drinker, introduced Peter Lucas of Davies and John Sieb of Prudential and invited them to share their views about the most significant issues and opportunities facing the LTCI community today.

Lucas urged that while embracing new concepts and insights, the industry should not lose focus on the basics of good policy and claim administration. Additionally, he spoke to the need for administrative flexibility capabilities so firms can quickly pilot new concepts and integrate them into workflows when proven successful. Looking to the future, Lucas addressed the importance of creating attractive career paths and opportunities for young and mid-level professionals while mentoring them to become the next generation of leaders.

Sieb stressed that proactive block management will create shareholder value by leveraging three key strategic pillars: 1) Data and Analytics—data is the new currency with a data lake being a game changer. All business key decisions are now data driven; 2) Digital TPA—positively impact the quality, control environment, customer experience, brand, and cost to serve; and, 3) Claims Management—Prudential Peak trademark…Rock Solid Solutions for Your Total Wellness and Independence focuses on the goal of keeping policyholders happier, healthier, and more independent at home longer, or to be able to remain at home while on claim. Mental, physical and financial wellness, home and on the go-safety and peak planning and on-claim verticals are the cornerstones of the Prudential Peak Total Wellness ecosystem. Expected outcomes are positive impacts on claims, brand, and customer experience. The overall value of proactive block management is to:

  • De-risk the block.
  • Maximize lifetime value of the customer through cross selling and attracting new customers.
  • Enhance customer experience and brand.
  • Keep policyholders healthy and at home.
  • Optimization/transformation value.
  • Prudent capital management.

Serfass also moderated a second engaging panel focused on significant regulatory issues and opportunities in the long term care insurance industry. The panel included Doug Slape, retired deputy commissioner from the Texas department of Insurance; Jan Graeber who previously worked at the Texas Department of Insurance and is now with ACLI; and Shawna Meyer, president and CEO of North American Life and Health. The panel focused on the regulatory community’s take on the current efforts of the LTCI community to improve the wellness of policyholders, as well as regulators’ views on best approaches to ensure compliance with applicable law as wellness initiatives continue to take shape and move forward.

Following these opening sessions, attendees engaged in small group discussions with an opportunity to share their thoughts with the larger group. This interactive format, followed throughout the meeting, led to valuable exchanges.

Wellness has become a buzz word in the long term care industry. After lunch and networking, Fred Garsson of Saul Ewing LLP presented on rebating and its relationship to long term care insurance wellness programs. The session introduced wellness as the main topic for the next couple of sessions.

The next session provided an overview of wellness programs, noting that they are largely focused on pre-insurance-claim intervention but that services can be provided to healthy, at-risk, and on-claim populations alike. Information shared included ground covered by the LTCI community toward amassing data as to the efficacy of various wellness/aging in place approaches as well as where the community is heading. The panel engaged in an interactive discussion on data analytics and the prospects for improved policyholder engagement and outcomes using wellness initiatives. Char Hu, the CEO of The Helper Bees moderated this multifaceted and insightful session on the state of wellness programs in the LTCI market today. John Palmer from GE NALH discussed company considerations for reinsurers, and Rhett Weiland, vice president, Long Term Care Claims Strategy at Prudential Financial described his company’s approach to creating data lakes and data visualization to interpret results.

Robert Eaton from Milliman discussed wellness program study design and various approaches to analyzing program results. The session was followed by small group discussions and a sharing of ideas with the larger group.

The second panel, The Future of Wellness in LTCi; Untapped Potential was moderated by Nolan Tully, Partner, Faegre Drinker. The panelists shared examples of wellness initiatives, including engagement initiatives, support wellness interventions, and care wellness programs. These initiatives and others under development are likely to play a significant part of the long term care insurance conversation for years to come.

Day One closed with an interactive group discussion, led by Matthew Capell, LTCG, followed by an outstanding reception and dinner.

On Thursday, October 20, the day’s meeting began with a two-part session about litigation that the industry can expect as wellness initiatives mature. The panelists explored what carriers and vendors can do to reduce the risk/incidence of such litigation and position their companies to defeat any litigation that arises.

The first session featured panelists Amy Kline of Saul Ewing, and Steve Brogan of Faegre Drinker, who focused on rate increases and claims.

Part Two included panelists Christie Conway of AssuriCare, Jeff Ferrand of LTCG, and Jessica Gallagher, of Faegre Drinker. Numerous examples and supportive information on anti-fraud litigation were shared.

Next up was a newer development in LTC coverage—publicly funded long term care programs. Stephanie Moench of Oliver Wyman and Carroll Golden of NAIFA reviewed the Washington Cares Trust and the feasibility study in progress in California being conducted by the CA Long Term Care Insurance Task Force. The discussion, led by moderator Chris Petillo of Faegre Drinker, also touched on the potential impact of current public option proposals, studies, or programs under consideration by various states and how such options may create opportunities and challenges for insurers.

The theme of newer developments was carried forward in the next panel discussion.

Panelists Loida Abraham of Reframe, Courtney Colby of Thrivent, Maureen Lillis of Independent Living Systems, and Ramona Neal of Living Benefit Review, discussed where the industry may see LTCI products and long term care services head. From new product to new health care initiatives, to improved advisor training, the industry is seeing renewed interest in providing additional options and wider distribution of LTCI choices. The necessity of thorough and in depth advisor/agent education will be essential to the successful distribution of new product.

The conference closed with comments from Nolan Tully of Faegre Drinker, who likened the conference as a precursor to the annual ILTCI conference held in the Spring. Steve Schoonveld, chair of the March 12th-15th conference, provided a quick glimpse of what to expect in Denver. Conference planning is progressing nicely with preparations for record attendance by exhibitors, sponsors, and attendees. The sessions are nearing full development with the general sessions focusing on behavioral finance, asking how consumers choose to purchase long term care insurance and their expectations for care as they age. For more information please email Schoonveld at steve.schoonveld@iltciconf.com or go to www.iltciconf.org. Registration is open and exhibitor and sponsorship opportunities are still available. Given the brain trust in attendance during the two days, the open debates, the professional diversity of the attendees, the exchanges of ideas and concepts, we rest assured industry professionals are determined to support and engage in a brighter LTCI future.

Carroll S. Golden, CLU, ChFC, LTCP, CASL, FLMI, CLTC, is the executive director of the NAIFA Limited and Extended Care Planning Center (LECP). Golden has an extensive background in business development, solutions selling, risk management and insurance distribution. She is recognized throughout the industry as one of the foremost thought leaders and subject matter experts on extended and long term care. Working with the LECP Founding Sponsors, Carroll and her team at NAIFA have put together the LECP Center to rethink extended and long term care.

Golden has held executive positions with both brokerage distribution and corporate carriers. She has been interviewed both on radio and television, has written numerous articles, and often presents at virtual meetings and various industry conferences. As a member of the Society of Financial Service Professionals (SFP), she served as chapter president and taught continuing education (CE) classes. She served as chairperson for both the Society of Actuaries Fifth LTC Conference and the Tenth Annual Intercompany Long Term Care Insurance (ILTCI) Conference. She currently participates on the board of directors of the ILTCI. Golden is listed on the International Retirement Resource Center’s Speakers Bureau and is currently working on publishing a book dealing with tomorrow’s multi-generational advisor/agent.

Golden can be reached via email at cgolden@naifa.org. Cell phone: 817-709-6859.