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Allianz Life Insurance Company of North America – Individual (2003-2009)

Rate request: 26.6 percent increase

Decision: Disapproved, limited to 15%

On February 7, 2019 Allianz Insurance Company of North America requested an average increase of 26.6 percent on a block of business of tax-qualified individual long-term policies which were sold from 2003 to 2009.

These are no longer being marketed. There are about 390 policies in force in Connecticut.

The company said in its filing that the increase is needed because there are more policies in effect than expected and people are living longer. The experience on this block of business is worse than anticipated when the product was originally priced.

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 Connecticut experience is not credible and the nationwide block of business has deteriorated. As a result, the Department disapproved the initial rate increase request and instead limited to a 15 percent increase on April 3, 2019.

The company said its policyholders will have options to change or reduce benefits in order to mitigate the impact of an increase. The new rate would take effect 60 days after the company has notified its policyholders.


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