AXA's decision to withdraw from the pre-funded long term care (LTC) market came out of the blue this month. However, the reasons behind the move came as no great shock. Sales of LTC insurance have been steadily falling for years. To be precise, the market has seen a 60% fall in business since 1996.
Without doubt, the market will miss AXA's presence. With just half a dozen players still active in the market, advisers are crying out for more competition. Pension Annuity Friendly Society's (PAFS) product launch last month raised hopes that the market was finally going to see more innovation. And there is no doubt that PAFS has softened the blow of AXA's decision. Other providers are denying they will follow AXA's lead, but it is hard to stay positive when you reflect on the downward spiral of pre-funded sales. Optimists in the market see forthcoming regulation as the light at the end o...
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