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Transamerica Life Insurance Company – Individual (2010-2013)


Rate request: 44.36 percent increase

Decision: Disapproved, limited to 10% increase

On April 12, 2019 Transamerica Insurance Company requested an increase of 44.36 percent on a block of business of individual long-term policies which were sold from 2010 to 2013.

These are no longer being marketed. There are about 902 policies in force in Connecticut.

The company said in its filing that the increase is needed because the experience on this block of business is worse than anticipated when the product was originally priced. This rate increase is needed due to claim levels that produce unacceptable lifetime loss ratios exceeding the statutorily required minimum loss ratio.

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 the Connecticut experience is worse than the nationwide, but it is a smaller block relative to nationwide. The nationwide experience has been at anticipated levels. Both nationwide and Connecticut specific blocks still need to meet a minimum 60% loss ratio over the lifetime of the policy forms. A 10% increase was approved.

The new rate will take effect 60 days after the company has notified its policyholders.

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