Partnership has announced an agreement between its life company, Partnership Life Assurance Company and Genworth to launch a medically underwritten immediate annuity, comparable to Partnership’s UK Care Annuity.
The product launch is planned for Q1 2016. Partnership said it is estimated that $45bn is spent annually in the US by individuals self-funding their care costs and fewer than 10% have any form of insurance to meet such costs.
The new product is aimed at addressing a need in the US to help individuals pay future care or other costs with a guaranteed income for life.
Steve Groves, CEO of Partnership, said: "The potential for this product is very significant; the market is huge and customers seeking to protect themselves against the cost of care over a highly variable future lifetime have limited alternative solutions at the point of need. With data collected over the last 20 years in the UK, we are well placed to help fulfil that need and pursue this opportunity and we look forward to working with Genworth."
Commenting on the agreement, Tom McInerney, president and CEO of Genworth said: "Partnership’s expertise in managing longevity risk complements Genworth’s strategic vision for leadership and stewardship within the long term care insurance industry and we believe it helps solve a clear unmet need in the US.
As market leaders in our respective domestic markets, Partnership and Genworth are natural partners with shared and aligned objectives, which will allow us to bring this product to the U.S. market for the benefit of customers and their families."
Partnership said the product has been filed by Genworth and approved in most US states to support a launch in Q1 2016
It added that a carefully managed and controlled roll out will be undertaken with trained and licensed distribution, which is expected to deliver a gradual build-up of sales
It explained that these annuities are relatively short duration (typically 3-4 years on average), which will allow experience to be refined, learnings to be captured and capital to be recycled.