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Unum Life Insurance Company – Group (2004-2012)

Rate request: 33.0 percent average increase

Decision: Disapproved, limited to 10% increase

On March 8, 2019 Unum Life Insurance Company requested an average increase of 33.0 percent on a block of business of group long-term policies which were sold from 2004 to 2012. The range of increase is 0% to 89%.

These are no longer being marketed. There are about 232 policies in force in Connecticut.

The company said in its filing that the increase is needed due to lower than expected lapse rates, better than expected mortality, increased claim duration, and the persistent low interest rate environment. The experience on this block of business is worse than anticipated when the product was originally priced.

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 much better than the nationwide, but it is a very small block relative to nationwide and could likely experience some future claim volatility. The nationwide experience has been well above anticipated experience and it is a larger, more stable block of insureds. Both nationwide and Connecticut specific blocks still need to meet a minimum 65% loss ratio over the lifetime of the policy forms. A 10% increase was approved.

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


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