An accounting expert who raised red flags about Bernie Madoff’s Ponzi scheme has a new target: General Electric Co.
General Electric's stock took a beating after the release of a report published by investigator Harry Markopolos claiming the company has been misleading investors. He accused GE last Thursday of engaging in accounting fraud worth $38 billion. He said GE is heading for bankruptcy and is hiding $29 billion in long-term care losses. To prove GE’s fraud his team located the 8 largest Long-Term Care (LTC) insurance deals that GE is a counter- party to, accounting for, according to them, approximately 95% or more of GE’s exposure. These deals were with:
The report also stated why LTC turned into a money losing business over time:
Relatively new product (in 1970)
High policy holder retention rate
lapse rate much lower than expected
Lower interest rate
More claims than forecast
High incidence of Alzheimers
Non-uniformity of reserving practices
Healthcare costs rising higher than expected
Tough to get rate increases
As the first InsurTech telematics product in LTC, SafeLights from CareValidate can help GE and other LTC's providers who are in a similar bind. SafeLights are known to reduce claims and increase senior safety. Insurance companies that need to reforge their relationships with their insureds are using InsurTech in almost all insurance verticals and LTC is no exception. This is because today's consumers expect more from their insurers. They gravitate to companies that don't just hope that there will be no claims but actually provide consumers the tools that prevent adverse events. InsurTech also helps insurers create more loyal and direct relationships with their insureds that are based on a foundation of trust created upon real world data.
To receive a free sample InsurTech telematics for LTC campaign email firstname.lastname@example.org.