Why GE Is Seeing a Surprise $15 Billion Shortfall

The transcript discusses GE's financial challenges related to its insurance portfolio, which led to a $6.2 billion charge and $15 billion in reserves. The SEC is investigating the situation, which has roots in GE's past involvement in the long-term care insurance market. Despite annual reviews, the extent of the liabilities was only recently acknowledged. The role of former CEO Jeff Immelt and other oversight bodies is questioned. GE attributes the issues to market conditions and policyholder claims, leading to a reevaluation of assumptions.

What challenges did insurers face in the long-term care insurance market during the late 90s and early 2000s?

What role did Jeff Immelt play in the situation surrounding GE's insurance portfolio?