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Issuance Decisions and Strategic Focus: The Case of Long‐Term Care Insurance

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  • Michael K. McShane
  • Larry A. Cox

Abstract

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.

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  • Michael K. McShane & Larry A. Cox, 2009. "Issuance Decisions and Strategic Focus: The Case of Long‐Term Care Insurance," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 76(1), pages 87-108, March.
    • Handle: RePEc:bla:jrinsu:v:76:y:2009:i:1:p:87-108
    DOI: 10.1111/j.1539-6975.2009.01289.x
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    5. Thomas R. Berry‐Stölzle & Muhammed Altuntas, 2010. "Feature Article: A Resource‐Based Perspective on Business Strategies of Newly Founded Subsidiaries: The Case of German Pensionsfonds," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 13(2), pages 173-193, September.

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