Continental Casualty Company – Group (1988-2011)
Rate request: 84.5 percent
Decision: Disapproved, limited to 15%
On September 14, 2020, Continental Casualty Company requested an average increase of 84.5 percent for its group long-term care policies.
The policies were sold in Connecticut from 1988 to 2011 and are no longer being marketed. There are approximately 2,600 insureds currently in effect in the state.
The company said it sought the increase in order to establish premium rates that are reasonable in relation to benefits based on actual historical experience and best estimate projections for these forms.
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 Actuarial review, the Department approved a level 15% increase on December 11, 2020. The company proposed an increase that varied by inflation protection but the Department approved a level increase due to lack of credibility in splitting the experience by inflation type and given the Connecticut experience has not followed the nationwide trends. This block has yet to meet the Connecticut minimum lifetime loss ratio and the historical experience in Connecticut has been close to anticipated levels, but the experience has been deteriorating recently and the projected lifetime loss ratios are significantly higher than required minimums.
The new rates would be implemented 60 days after the company notifies customers.
Find the filing documents here at Long-Term Care Insurance Rate Filing