CID: Long-Term Care Rate Filing - Prudential Insurance Company of America (Individual)

Long-Term Care Rate Filing - Prudential Insurance Company of America (Individual)

Rate request: 48.3 percent average increase

Decision: Disapproved, reduced to 18 percent

On April 18, 2016, the Prudential Insurance Company of America requested an average rate increase of 48.3 percent on certain individual long-term insurance policies. The policies were initially offered from 1998 to 2012 and are no longer being actively marketed.

There are approximately 1,400 policies in force in Connecticut.

The company said it sought the increase because the number of people expected to draw lifetime benefits on a nationwide basis is significantly higher than what was initially anticipated when the company first priced the product. The costs to maintain those benefits for the lifetime of the plan are also higher than anticipated.

After an actuarial review, the Department determined that while the Connecticut block of business has performed somewhat better than expected, the company’s claims experience nationwide is worse than expected, particularly over the last two years. As a result, the Department disapproved the initial increase request but determined that some increase was justified and approved an increase of 18 percent.

Prudential said it will work with its customers to change their coverage options in order to mitigate the impact. In its rate filing the company said “there will also be opportunities for almost all policyholders to keep the premium at or below the same level that they were paying prior to the rate revision.”

The new rates will take effect 60 days after the company notifies customers and not before July 1, 2016.


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

Content Last Modified on 6/8/2016 2:18:03 PM