Genworth Life Insurance Company – Individual (2004-2012)
Rate request: 39.9 percent increase
On October 7, 2019 Genworth Life Insurance requested a rate increase of 39.9 percent on Choice 2, Classic Select and Privileged Choice long-term care policies sold to individuals in Connecticut from 2004 to 2012. These policies are no longer being marketed.
There approximately 9,400 policies in force in Connecticut.
The company said the rate increase is needed because experience has been unfavorable and has had a negative impact on lifetime loss ratios. Persistency, claim incidence, claim continuance and benefit utilization rates have emerged higher than expected. More policyholders than originally assumed are claiming benefits and the premiums are not sufficient to offset those expected higher claims costs
The company said it will offer its customers several options to change benefits to keep premium at previous levels.
Upon Actuarial review, the Department approved the filing. The experience continues to be worse than anticipated for nationwide and recent experience in Connecticut has deteriorated.
Under Connecticut law, long-term care premium increases of 20 percent or more must be phased in over three years or longer. Genworth will implement three annual increases of 13%, which are actuarially equivalent to one 39.9% increase.
Find the filing documents here at Long-Term Care Insurance Rate Filing