Brighthouse Life Insurance Company – Individual (1990-2001)
Rate request: 173.0 percent increase
Decision: Disapproved, limited to 50%
On June 16, 2020 Brighthouse Insurance Company requested an increase of 173.0 percent on a large 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 4,900 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.
After Actuarial review, the Department approved a 50% rate increase on October 22, 2020, to be phased in over 3 years due to Connecticut law (16.5% each of three years). The Connecticut and nationwide experience has significantly exceeded the required minimum lifetime loss ratio and anticipated experience levels, but the recent historical experience has started to show signs of stabilization.
The company said its policyholders will have options to change or reduce benefits in order to mitigate the impact of an increase.
Find the filing documents here at Long-Term Care Insurance Rate Filing