On January 10, 2022, Transamerica Insurance Company requested an increase of 19.9 percent on a block of business of individual long-term policies (UniProduct 2a Series) which were sold from 2010 to 2013. After clarification, the Company requested a total rate increase of 68.53%.

These are no longer being marketed. There are about 816 policies in force in Connecticut.

The company said in its filing that the increase is needed because the experience on this block of business is worse than anticipated when the product was originally priced. This rate increase is needed due to claim levels that produce unacceptable lifetime loss ratios exceeding the statutorily required minimum loss ratio.

After Actuarial review, the Department approved a 40% increase on June 23, 2022. The approved rate increase reflects the impact of the most current set of assumptions on the experience going forward as well as the amount needed to bring the Connecticut rate level more in line with nationwide. Since the approved 40% is larger than 20%, Connecticut Regulation requires it be spread out over at least three years. The Company will be implementing a 12.33% increase annually for three years.

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.

The company said its policyholders will have options to change or reduce benefits in order to mitigate the impact of an increase. The new rate will take effect 60 days after the company has notified its policyholders.

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