CID: Long Term Care Rate Filing - John Hancock Life Insurance Company (Group)

Long Term Care Rate Filing - John Hancock Life Insurance Company (Group)

Rate request: 35 percent average increase

Decision: Disapproved, limited to a range of 11.8% to 15% increase on June 12, 2017

On March 14, 2017, John Hancock Life Insurance Company requested an average rate increase of 35 percent on several of its group long-term care policies, which were sold from 1997 to 2014 through employers or associations. There are approximately 2,000 policies in force in Connecticut.

The company reported in its filing that the increase is needed because policyholders are living longer and requiring benefits that are more expensive over longer periods of time.

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 block of business in Connecticut is performing better than expected, while the nationwide business has deteriorated. As a result, the Department disapproved the initial rate increase request and limited it to an increase that ranges from 11.8 percent to 15 percent, depending on the policy form.


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

Content Last Modified on 6/12/2017 2:16:16 PM