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 18 percent

Decision: Disapproved, limited to a 9% increase on March 19, 2018.

On February 16, 2018 Northwestern Long Term Care Insurance Company requested an average rate increase of 18 percent on a block of business of individual long-term policies which were sold from 2010 to 2013.

There are approximately 3,100 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.” Because of this the company is spending significantly more on benefits than anticipated when the product was initially priced.

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 overall experience on this block of business, which represents three different types of policy series, has been deteriorating and will likely continue to perform worse than expected. The Department also noted that within those three types of policies, some series are performing better than expected. As a result, the Department disapproved the initial rate increase request and limited to an increase of about 9 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 3/19/2018 2:27:53 PM