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

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

Rate request: 130 percent increase

Decision: Disapproved, limited to a 40 percent increase over 3 years

On February 17, 2017 Genworth Life Insurance requested a rate increase of 130 percent on group long-term care policies sold in Connecticut from 1992 to 2012. These policies are no longer being marketed.

There approximately 1,300 policies in force in Connecticut.

The company said the rate increase is needed because of worsening experience. The benefit costs far exceed what the company had originally projected when it originally priced these products.

The company said it will offer its customers several options to change benefits and mitigate the impact of large increases.

After an actuarial review, the Department determined that the block of business in Connecticut has been deteriorating since 2015 and that nationally, the company’s block of business is also performing worse than expected. The Department concurred that without some rate increase the company’s expenses for claims would exceed revenue from premium.

As a result, the Department disapproved the initial increase request, but approved a lower average increase of 40 percent on April 11, 2017. Under Connecticut law, any increase over 20 percent must be phased in over three years or more to mitigate the impact on policyholders.


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

Content Last Modified on 4/11/2017 1:06:34 PM