Will $14.5 billion plug GE's long-term care insurance hole? Some experts say 'No'

General Electric Co is setting aside one of the largest amounts ever to cover potential losses on policies that provide long-term care in nursing facilities and patients’ homes. But insurance experts are concerned that may not be enough. Last week, GE provided new details about its insurance and scheduled a “teach in” for Thursday (March 7, 2019) to give more information.

GE has since cut $500 million from the $15 billion in reserves it plans to make for the policies through 2024. Its latest loss recognition test required only a $65 million after-tax charge, a sign, it said, that its estimates are on track. But GE’s disclosures and reserves have not eliminated fears that insurance could bring more pain to GE and its investors.

“I think it is impossible to know whether the $15 billion is enough,” Joseph Belth, professor emeritus of insurance at Indiana University, who has written extensively about long-term care policies, told Reuters after reviewing GE’s disclosures.

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