On December 20, 2021 Genworth Life Insurance requested a rate increase of 58.9 percent on long-term care policies sold to groups (Form 7040) in Connecticut from 1992 to 2012. These policies are no longer being marketed.

There are approximately 1,033 lives in force in Connecticut.

The company said the rate increase is needed because actual historical experience combined with best estimate assumptions have resulted in lifetime loss ratios significantly higher than what was anticipated in pricing, driven by future expectation of morbidity experience. The company said it will offer its customers several options to change benefits to keep premium at previous levels.

After Actuarial Review, the Department disapproved the request but limited it to 40.0% on June 2, 2022. The Connecticut rate level is low relative to the nationwide rate level and the projected lifetime loss ratios are well above the 65% statutory minimum.

The new rates will be implemented at least 60 days after the company notifies its policyholders of a price change. Under Connecticut law, long-term care premium increases of 20 percent or more must be phased in over three years or longer. This increase will be implemented over 3 years at 13.2% annually.

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