Evaluating consumer preference for private long-term care insurance

Abstract

Despite significant growth in the market for private long-term care insurance in recent years, empirical research is lacking on how policy attributes affect consumer preference. Using conjoint techniques, the authors estimate the utility values associated with different levels of long-term care policy attributes, as well as the overall importance of the attributes. A simulation procedure for estimating the percentage of consumers who would prefer specific types of policies also is presented.