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: 60.5 percent average increase

Decision: Disapproved, limited increase to an average of 32.3% on June 29, 2017

On March 15, 2017, John Hancock Life Insurance Company requested an average rate increase of 60.5 percent on a series of its individual long-term care policies, which were sold from 1991 to 2012.

There are approximately 8,000 policies in force in Connecticut.

The company reported in its filing that the increase is needed because policyholders are living longer and requiring benefits that are more expensive over longer periods of time.

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 of the seven different types of plans in this block of business, the Department determined that some plans were performing much worse than expected when they initially priced, while projected claims costs for others were better than expected. As a result, the Department rejected the initial average increase request on June 29, 2017, but approved an average increase of 32.3 percent with a range of increases from just under 10 percent to 50 percent, depending on the plan.

The company said it will give policyholders the options of reducing benefits to offset higher premiums.

The new rates will take effect after the company has provided a 90-day notice to its customers. Connecticut law requires that any long-term rate increase of 20 percent or more be phased in over at least three years.


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


Content Last Modified on 6/30/2017 9:54:15 AM