CID: Long-Term Care Rate Filing - John Hancock Life Insurance Company (Individual)

Long-Term Care Rate Filing - John Hancock Life Insurance Company (Individual)



Rate request: 33.4 percent average increase

Decision: Dispproved, approved 10% average increase September 28, 2015


On August 4, 2015, John Hancock Life Insurance Company requested a 33.4 percent rate increase on several of its individual long-term care policies, which were sold from 1991 to 2010. There are approximately 7,600 policies in force in Connecticut.

The company reported in its filing that the increase is needed because it seeing longer-lasting and more expensive claims, increased claim incidence among the oldest policyholders and longer lifespans among policyholders. The increase is needed, the company said, "to ensure our ability to meet the needs of our policyholders in the long-term."

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 concurred these blocks of business are doing worse that what was anticipated when the original pricing was developed. However, the Department determined that the company had not yet factored in the impact of a previous rate increase. As a result, the Department disapproved the request as submitted on September 28, 2015 and instead limited it to an average increase of 10 percent.

The company said in an effort to mitigate the impact of any potential increase it will offer its policyholders the option of reducing benefits to help maintain their current premium level.


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




Content Last Modified on 9/28/2015 3:12:49 PM