On December 22, 2021 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.

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 Department disapproved the rate request on May 18, 2022. Genworth stated that the request was for remaining amounts requested in the past but not approved in Connecticut. The Department determined that this catch-up amount was excessive given the cumulative increases Connecticut has approved relative to nationwide increases.

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