Hybrid Annuity/LTC Products May Be Stymied By Silos

Policies that combine annuities and long-term-care insurance won't fly unless insurers overcome the inability of their computer systems to handle hybrid products, according to an information technology expert.

Such hybrids will be permitted after 2009 by the recently passed Pension Reform Act, but insurers will have to break down their departmental silos before the products can become viable, said Stephen Kendrick, head of North American insurance operations for MajescoMastek, an Edison, N.J., IT firm.

Hybrid Annuity/LTC Products May Be Stymied By Silos
Source: Investment News (subscription required)