On September 9, 2022 Genworth Life Insurance requested a rate increase of 13.2 percent on “pre-PCS” long-term care policies with lifetime benefits sold to individuals in Connecticut from 1988 to 1998. These policies are no longer being marketed. No rate increase is requested on policies with limited benefits. The Company has stated that if the Department approves this increase, they will guarantee no further rate increases on this block and amend all contracts to non-cancellable.

There approximately 373 policies in force in Connecticut.

The company said the rate increase is needed because experience has been unfavorable and has had a negative impact on lifetime loss ratios. Persistency, claim incidence, claim continuance and benefit utilization rates have emerged higher than expected. More policyholders than originally assumed are claiming benefits and the premiums are not sufficient to offset those expected higher claims costs.

After Actuarial review, the increase was approved on December 8, 2022. Given the rate guarantee is applied to all policyholders in this block and covers all future experience over the remaining lifetime of these policies, the Department felt an approval was reasonable.

The new rates will be implemented at least 60 days after the company notifies its policyholders of a price change.

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