Brighthouse Life Insurance Company – Individual (1990-2001)
Rate Request: 173.0 percent increase
On December 20, 2019 Brighthouse Insurance Company requested an increase of 173.0 percent on their block of business of Individual Comprehensive and Facility-Only long-term policies, including Partnership policies, which were sold from 1990 to 2001.
These are no longer being marketed. There are about 7,600 policies in force in Connecticut.
The company said in its filing that the increase is needed due to morbidity and persistency levels which produce lifetime loss ratios in excess of original pricing and the minimum requirement.
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 disapproved the rate increase on January 30, 2020. The Department approved a 37.1% rate increase on a material group of policyholders within this block on June 20, 2019. It was determined that not enough time had elapsed to determine the impact of the recent rate increase and if the block had begun to stabilize.