The authors thank Etti Baranoff, Andre Liebenberg, Walt Mayer, Kathleen McCullough, two anonymous reviewers, and the associate editor for their helpful comments on previous versions of this research.
Issuance Decisions and Strategic Focus: The Case of Long-Term Care Insurance
Article first published online: 10 FEB 2009
© The Journal of Risk and Insurance, 2009
Journal of Risk and Insurance
Volume 76, Issue 1, pages 87–108, March 2009
How to Cite
McShane, M. K. and Cox, L. A. (2009), Issuance Decisions and Strategic Focus: The Case of Long-Term Care Insurance. Journal of Risk and Insurance, 76: 87–108. doi: 10.1111/j.1539-6975.2009.01289.x
- Issue published online: 10 FEB 2009
- Article first published online: 10 FEB 2009
Increasing costs of long-term care are placing ever greater burdens on state and federal budgets, yet private long-term care insurance remains a relatively minor financing vehicle. Although many researchers provide rationales for the limited private market, some life–health insurers have forged ahead into this relatively new and risky line of business. We investigate what makes these insurers different and whether managers are following a diversification or strategic focus strategy. We find that strategic focus is a consistently important factor and that managers' participation and volume decisions are made independently.