John Hancock Life Insurance Company (Individual: 2007 to 2014)

Rate request: 26.9 percent average increase

Decision: Disapproved, limited to a 15% increase on November 26, 2018

On October 15, 2018, John Hancock Life Insurance Company requested an average rate increase of 26.9 percent on its Leading Edge series of individual long-term care policies, which were sold from 2007 to 2014. There are approximately 290 policies in force in Connecticut.

The company reported in its filing that the increase is needed because policyholders are living longer and requiring benefits that are more expensive over longer periods of time.

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 an actuarial review, the Department determined that while there is some deterioration with this small Connecticut block of business, the inception-to-date loss ratios are still below the statutory minimum and there is a lack of credibility with such a small sampling. As a result, the Department disapproved the initial rate request and instead limited it to a 15 percent increase on November 26, 2018.

The new rates take effect after the company has provided a 90-day notice to its customers.


Find the filing documents here at Long-Term Care Insurance Rate Filing