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

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

Rate request: 45 percent increase
Decision: Disapproved April 8, 2015

On December 5, 2014, Metropolitan Life Insurance Company requested a 45 percent increase on a block of business of group long-term care policies which were sold in Connecticut before 2010.

They are no longer being marketed. There are 2,817 policies in force in Connecticut.

The company said in its filing that the increase was needed because of a higher demand for benefits over a longer period that “far exceeds original pricing expectations.”

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 this block of business is performing better than expected in both the Connecticut and national market. Additionally, the company costs for the lifetime of these policies are still well below the statutory minimum 65 percent loss ratio. As a result, the Department disapproved the request on April 8, 2015, noting that any increase at this time would be excessive.

Find the filing, brief summary and public comment section here at Long-Term Care Insurance Rate Filing

Content Last Modified on 4/8/2015 3:07:57 PM