On July 29, 2022 Genworth Life Insurance requested an average rate increase of 136 percent on a subset of its Choice I long-term care policies sold to individuals in Connecticut from 2002 to 2005. Policies with non-Lifetime benefit period are excluded from the rate increase request if they have no inflation or a 1% inflation option. These policies are no longer being marketed. There are approximately 2,260 lives in force in Connecticut that would be impacted by this increase.

The company said the rate increase is needed because as experience has emerged, it has continued to unfold unfavorably and the continued need for premium increases to offset those expected higher claims costs.

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 a reduced increase that ranged from 0% to 45% on May 18, 2023, which varies by benefit period and inflation coverage. The historical and projected lifetime loss ratios are both higher than anticipated levels. The reduced approval reflects a Connecticut rate level the Department feels is adequate relative to nationwide while allowing some increase to incorporate the future impact of the current assumption levels. 45%/37%/37%/0% rate increases were approved for Lifetime benefits High inflation coverage (>1%)/Lifetime benefits Low inflation coverage (0% or 1%)/ Limited benefits High inflation coverage and Limited benefits Low inflation coverage respectively.

The company said it will offer its customers several options to change benefits and keep premium costs.

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. These approved increases will be implemented over 3 years at 14.6%/12.4%/12.5% for Lifetime benefits High inflation coverage (>1%)/Lifetime benefits Low inflation coverage (0% or 1%)/ Limited benefits High inflation coverage respectively.

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