Prudential Insurance Company of America - Individual (1999 - 2012)


Rate request: 105.2 percent average increase

Decision: Disapproved, limited to 15%

On June 14, 2019 Prudential Insurance Company of America requested an average increase of 105.2 percent on a block of business of individual long-term policies which were sold from 1999 to 2012. The range of increase is 0% to 331%.

These are no longer being marketed. There are about 1267 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 experience is better than anticipated, it has deteriorated over the most recent years. Both nationwide and Connecticut specific blocks still need to meet a minimum 60% loss ratio over the lifetime of the policy forms. A 15% increase was approved on October 11, 2019.

The new rate 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