Rate request: 35% increase on lifetime benefit policies; 12% increase on all others
Decision: Lowered increase for lifetime benefits to 19% increase; approved 12% increase for all others on January 5, 2015
On September 19, 2014, Genworth Life Insurance requested an average increase of 17.3 percent on two of its policies (7035, 7037). These individual policies were sold from 2002 to 2005 and are no longer being marketed. There are approximately 4,900 policies in force in Connecticut.
When broken out, the range of the requested increases are 35 percent on policies with a lifetime benefit, and 12 percent on policies with all other benefit periods.
The company reported that it needed to raise rates because the number of people drawing lifetime benefits 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 experience on the plans – both in Connecticut and nationwide – is worse than expected and that some rate increase was warranted. However, the Department noted that the company did not entirely account for a previously approved increase in 2013 in its calculation. As a result, the Department approved a lower increase request of 19 percent on policies with lifetime benefits and approved, as submitted, an increase of 12 percent on all other policies on Jan. 5, 2015.
The company will offer its customers several options to change benefits and keep premium costs down near current levels to mitigate the impact to its policyholders.