CID: Long-Term Care Rate Filing - MetLife Insurance Company (Individual-1992 to 1994)

Long-Term Care Rate Filing - MetLife Insurance Company (Individual-1992 to 1994)



Rate request: 13.6 percent average increase

Decision: Approved September 21, 2016

On April 27, 2016, MetLife Insurance Company requested an average increase of 13.6 percent on a small block of long-term care policies offered through the state’s Partnership program. The policies were sold in Connecticut from 1992 to 1994 and are no longer being marketed.

There are 47 policies in force in Connecticut.

The company said in its filing that the increase is needed because of a much expected higher demand for benefits over a longer period of time than originally projected when the policies were originally 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 company’s claims experience has continued to deteriorate despite earlier rate increases. The Department also noted that MetLife has already met the state’s statutory minimum loss ratio of 60 percent over the life of these policies, meaning it is spending 60 cents of every premium dollar on benefits. As a result, the Department approved the rate increase request on September 21, 2016.

The new rate will take effect on when the policies renew on their billing anniversary and after 60-day notification period to the policyholder. With the increase, the average annual premium in Connecticut would rise from about $3,730 to $4,240 or approximately $40 more a month.

The company 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 9/21/2016 3:57:38 PM