CID: Long-Term Care Rate Filing - Northwestern Long Term Care Insurance Company (Individual)

Long-Term Care Rate Filing - Northwestern Long Term Care Insurance Company (Individual)



Rate request: Average increase of 27 percent

Decision: Disapproved, limited to 15% increase on February 17, 2017

On January 23, 2017 Northwestern Long Term Care Insurance Company requested an average rate increase of 27 percent on a block of business of individual long-term policies which were sold from 1998 to 2013.

There are approximately 1,521 policies in force in Connecticut.

The company said in its filing that the increase is needed due to “people living longer, holding onto their policies longer, going on claim more frequently, and staying on claim longer than originally assumed.”

The company noted that while it believes it could justify a higher rate increase, it is “taking into consideration the impact on our policyholders.”

Unlike medical health insurance with premiums set to cover expenses incurred only during the upcoming policy year, long term care premiums are set to cover expenses that are not expected to occur until a distant date, sometimes 20 years in the future.

After an actuarial review, the Department determined that while the performance of the Connecticut block of business has deteriorated in the past two years, overall these plans were still doing better than expected when the product was originally priced. As a result, the Department disapproved the initial increase request of 27 percent on February 17, 2017 but did allow for an average increase of no more than 15 percent.

Northwestern said it would offer its customers options to reduce or change benefits to offset the impact of an increase.


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Find the filing documents here at Long-Term Care Insurance Rate Filing


Content Last Modified on 2/21/2017 10:22:22 AM