Prudential Insurance Company of America – Group (1998 to 2012)


Rate request: 71.9 percent average increase

Decision: Disapproved, limited to a 10-18% rate increase

On May 27, 2019 Prudential Insurance Company of America requested an average increase of 71.9 percent on a block of business of group long-term policies which were sold from 1998 to 2012. The range of increase is 10% to 106%.

These are no longer being marketed. There are about 5,692 policies in force in Connecticut.

The company said in its filing that the increase is needed to help ensure that future premiums, in combination with existing reserves, will be adequate to fund anticipated claims. Some of Prudential’s pricing assumptions for these series of forms, although based on the best information then available, were not consistent with emerging experience.

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, it was determined that while the Connecticut and/or nationwide experience has deteriorated over the most recent years, both nationwide and Connecticut specific blocks still need to meet a minimum 65% loss ratio over the lifetime of the policy forms. On October 11, 2019, an 18% increase was approved for product GLTC2, a 10% increase was approved for product GLTC3 and a 10% increase was approved for product GLTC4.

The new rates will take effect after the company has notified its policyholders, according to the contractual and regulatory provisions.

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