CID: Long-Term Care Rate Filing - Mutual of Omaha Insurance Company (Individual 1997-2004)

Long-Term Care Rate Filing - Mutual of Omaha Insurance Company (Individual 1997-2004)



Rate request: 56 percent increase

Decision: Disapproved, limited to a 15% increase on December 18, 2018

On October 24, 2018, Mutual Omaha Insurance Company requested a 56 percent increase on a block of business of individual long-term policies sold from 1997 to 2004 and are no longer being marketed. There are approximately 280 policies in force in Connecticut.

The company said in its filing that the increase is needed because “significantly higher anticipated future and lifetime loss ratios,” due to higher lifetime benefit claim costs.

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 inception-to-date loss ratio on the small Connecticut block of business is lower than expected. However the experience for the non-lifetime benefit period continues to deteriorate. As a result, the Department disapproved the initial rate increase request and limited it to a 15 percent increase on December 18, 2018.

The new rates take effect February 1, 2019 and thereafter.


###

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


Content Last Modified on 12/18/2018 3:45:54 PM