The Long-Term Care Insurance Market

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. The Geneva Papers (2008) 33, 33–40. doi:10.1057/palgrave.gpp.2510164