Long Term Care Insurance Sales on Gradual Upswing;
in Step With Aging Baby Boomer Population
As the Baby Boomer generation continues its grinding march toward senior
citizenship, sales of insurance products associated with aging, such as long
term care (LTC) insurance, are also keeping pace, according to a recent analysis
of data from the Claritas Insurance CLOUT™ database. The database houses
current-year estimates and five-year projections of product usage and demand for
insurance products and services.
The analysis estimated that within the next five years the number of U.S.
households that own LTC insurance will increase from 16.5 percent to nearly 18
percent, and in the Washington, D.C. Designated Market Area (DMA), which is
projected to be the most active market during this time, the number goes even
higher — to 21 percent. A DMA is the geographic area surrounding a city in
which the broadcasting stations based in that city account for a greater share
of the listening or viewing households than do broadcasting stations based in
other nearby cities.
Currently, the Washington, D.C. DMA also leads the nation for LTC sales with a
household penetration rate of 8.1 percent and an index score of 129, meaning
that households in this market are 29 percent more likely than the average to
buy LTC insurance.
Claritas Vice President Jane Crossan said one reason the Washington, D.C. DMA,
which also comprises portions of Virginia, Maryland and West Virginia, is at the
top of the list is because 40 percent of its households are in the highest
growth segment for LTC insurance products — the upper end of the Mass Affluent
segment (households with between $500,000 and $1 million in Income Producing
Assets).
"Also, the findings from a number of surveys have shown that the so-called aging
Baby Boomers are increasingly concerned about outliving retirement savings as
the mortality rate continues to increase, but, by the same token, they also want
to be able to take care of health care needs," said Crossan.
The next two DMAs behind Washington D.C. are both in Florida, which Crossan said
is not surprising given its large senior citizen population. They are Ft.
Myers-Naples on the Gulf Coast and West Palm Beach on the East Coast with
penetration rates of 7.9 percent and 7.7 percent and indexes of 126 and 124
respectively.
Rounding out the top 10 active markets as ranked by penetration percentage and
index rates are:
4. Baltimore, MD, 7.7 percent, 123 index.
5.-9. Charlottesville, VA, Atlanta, GA, Austin, TX, Richmond-Petersburg, VA
and Dallas-Fort Worth, TX, all with a ranking of 7.4 percent, 119 index.
10. San Francisco, CA, 7.3 percent, 118 index.
About Claritas Inc.
Since 1971, San Diego-based Claritas has been the pre-eminent source of accurate,
up-to-date marketing information about people, households and businesses within
any geographic area in the United States. Its target marketing services are
aimed at reducing the cost of customer acquisition and growing customer value.
Claritas offers industry-leading consumer segmentation systems, consulting
services and software applications for site analysis, advertising sales and
customer targeting. Claritas is a division of VNU, a world-leading information
and media company that includes ACNielsen, Nielsen Media Research, Spectra
Marketing Systems and Scarborough Research, among others. To learn more about
Claritas and VNU products and services visit their web sites at www.claritas.com
and www.VNU.com.
Contact:
Stephen F. Moore
Claritas Inc.
858-677-9634
Email Contact
SOURCE: Claritas Inc.
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