On July 29, 2022 Genworth Life Insurance requested an average rate increase of 119 percent on a subset of its Choice 2, Classic Select and Priviledged Choice long-term care policies sold to individuals in Connecticut from 2004 to 2012. Policies with no inflation or a 1% inflation option and non-Lifetime benefits are excluded from the rate increase request. These policies are no longer being marketed. There are approximately 6,610 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 60% on May 18, 2023, which varies by benefit period and inflation coverage. 60%/25%/40%/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 reduced approval reflects the Department allowing some increase to incorporate the future impact of the current assumption levels.

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

If approved 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. The Company will implement 18.7%/8.6%/13.3%/0.0% annual increases for three years 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.

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