Insurers hopeful LTC slump will be short-lived.(Review & Forecast)(Long-Term Care )

A TREND TO HIGHER PREMIUMS for new long term care insurance policies and continuing departures of insurers from the market were prime factors leading to a decline in sales for LTC products in 2004, say industry observers.

LTC insurers decided to raise prices on new policies after taking a long-term look at profitability, executives for leading carriers say.

The price increases were made easier by the fact that major carriers like Transamerica, TIAA-CREE CNA and Aegon recently either left the LTC market or announced plans to do so.

"The shakeout ex