Genworth Life Insurance Company – Group (2005-2017)
Rate request: 65.1 percent increase
Decision: Disapproved, limited to 15%
On August 1, 2020 Genworth Life Insurance requested a rate increase of 65.1 percent on long-term care policies sold to groups (Form 7046) in Connecticut from 2005 to 2017. These policies are no longer being marketed.
There are approximately 540 lives in force in Connecticut.
The company said the rate increase is needed because actual historical experience combined with best estimate assumptions have resulted in lifetime loss ratios significantly higher than what was anticipated in pricing, driven by future expectation of morbidity experience. The company said it will offer its customers several options to change benefits to keep premium at previous levels.
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 reduced 15% increase across all policyholders. While the Connecticut and the nationwide historical experience in total was better than expected, there has been a deterioration in the most recent years. The block also still needs to meet a minimum 65% lifetime loss ratio, as required by Connecticut.
The new rates will be implemented at least 60 days after the company notifies its policyholders of a price change.
Find the filing documents here at Long-Term Care Insurance Rate Filing