Northwestern Long Term Care Insurance Company – Individual (2002–2010)


Rate request: Average increase of 27 percent

Decision: Disapproved, limited to a 15% increase on January 29, 2019

On December 28, 2018 Northwestern Long Term Care Insurance Company requested an average rate increase of 27 percent on a block of business of individual long-term policies which were sold from 2002 to 2010 and are no longer being marketed.

There are approximately 1,700 policies in force in Connecticut.

The company said increase is needed due to people living longer, holding onto their policies longer, going on claim more frequently, and staying on claim longer than originally assumed. That has resulted in “significantly higher anticipated future and lifetime loss ratios.”

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 although the inception-to-date loss ratios are better than expected in Connecticut, the experience for both the Connecticut and nationwide blocks of business has deteriorated in 2016 and 2017 and could lead to higher than anticipated loss ratios in the future. As a result, the Department disapproved the initial rate increase request and instead limited to a 15 percent increase on January 29, 2019.

Northwestern said it would offer its customers options to reduce or change benefits to offset the impact of an increase. The new rates take effect 60 days after the company has notified its customers.

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