Genworth Life Insurance Company – Individual (2012-2014)
Rate Request: 51.6 percent increase
Decision: Under Review
Public comment period will remain open until filing is closed
On November 23, 2020 Genworth Life Insurance requested a rate increase of 51.6 percent on its Flex I long-term care policies sold to individuals in Connecticut from 2012 to 2014. These policies are no longer being marketed.
There approximately 2,150 policies in force in Connecticut.
The company said the rate increase is needed because actual historical experience combined with revised best estimate assumptions have resulted in lifetime loss ratios greater than what was anticipated at pricing driven by the various assumption updates but as primarily attributed to future expectations of morbidity.
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.
The company said it will offer its customers several options to change benefits and keep premium costs.
If approved the new rates will be implemented at least 60 days after the company notifies its policyholders of a price change. Under Connecticut law, long-term care premium increases of 20 percent or more must be phased in over three years or longer.