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 November 28, 2016

On October 21, 2016 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 3,300 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.” Northwestern noted this is the first time it has raised rates on these policies and said “we don’t make this decision lightly. However, we believe that in the best interest of all of our policyowners, this action is prudent to sustain the financial wellbeing of the product line, and to strengthen our ability to pay future claims.”

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 the company’s block of business in Connecticut is performing much better than expected. As a result, the Department disapproved the rate increase request on November 28, 2016, ruling that the current rates are “neither excessive, nor inadequate nor unfairly discriminatory.”


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

Content Last Modified on 11/28/2016 1:24:55 PM