CID: Long-Term Care Rate Filing - Prudential Insurance Company of America (Group)

Long-Term Care Rate Filing - Prudential Insurance Company of America (Group)

Rate request: 40 percent average increase

Decision: Disapproved, limited to a 10% increase on October 17, 2017

On July 24, 2017, the Prudential Insurance Company of America requested an average rate increase of 40 percent on certain group long-term insurance policies used by employers for their employees. The policies were initially issued in 2002 and are no longer being marketed.

There are approximately 4,100 policies in force in Connecticut.

The company said it sought the increase because the number of people expected to draw lifetime benefits on a nationwide basis 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.

“The rate increase is needed to help ensure that future premiums, in combination with existing reserves, will be adequate to fund anticipated claims,” the company noted in its filing. “We have tried to keep these increases as low as reasonably possible in the hope of minimizing the impact on our certificate holders.”

Prudential said it would work its customers to change their coverage options in order to mitigate the impact of a large rate increase.

After an actuarial review, the Department determined that the company’s claims costs are running lower than anticipated but noted that nationwide the experience is beginning to deteriorate. As a result, the Department disapproved the initial rate increase request on October 17, 2017 and limited it to a 10 percent increase.


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

Content Last Modified on 10/23/2017 5:04:24 PM