The Geneva Papers (2008) 33, 33–40. doi:10.1057/palgrave.gpp.2510164
The Long-Term Care Insurance Market
Denis Kesslera
aImmeuble SCOR, 1, Avenue Général de Gaulle, 92074 Paris La Défense Cedex, France. E-mail: dkessler@scor.com
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Abstract
This paper focuses on the existence of an insurance market for long-term care. There are three major risks for insurers that provide long-term care insurance: risk of escalating costs, risk of adverse selection and risk of moral hazard. Despite these risks, the long-term care insurance is a potentially expanding market for insurance companies able to innovate and design products tailored to this very specific demand.
Keywords:
long-term care insurance, escalating costs, adverse selection, moral hazard: France and the United States, old age
