On April 27, 2022, Allianz Insurance Company requested an overall average increase of 21 percent for a block of individual long-term care policies. The policies were sold in Connecticut from 2001 to 2005 and are no longer being marketed. The increase ranges from 5% to 60% and varies by benefit period.

There are about 31 policies currently in effect in Connecticut.

The company said the increase is due to past and projected experience that continues to be more adverse than previously expected and originally priced for.

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 Actuarial review, the Department approved the 21% increase on July 5, 2022, but approved a level increase across all policyholders. With 31 policyholders remaining, Connecticut experience is not credible. This decision reflects the historical experience and future projections based on assumption changes since original pricing, as well as the Connecticut rate level versus nationwide. The increase will be implemented over three years, at 7.7% a year.

The company noted it would offer its customers options to reduce or change benefits to offset the impact of an increase. If approved, the new rates will take effect 60 days after the company notifies policyholders. Under Connecticut law, increases of 20 percent or more must be phased in over three or more years.

###