On April 14, 2022, Transamerica Insurance Company requested an increase of 23.12 percent on a block of business of individual long-term policies (UniProduct 2b Series) which were sold from 2012 to 2018.

These are no longer being marketed. There are about 1,827 policies in force in Connecticut.

The company said in its filing that the increase is needed because the experience on this block of business has exceeded the margin for adverse experience considered in original pricing.

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 rate increase was disapproved as submitted but limited to 19.34% on November 18, 2022. The Department reviewed historical experience as well as the impact of current assumptions on future projections. While it was determined an increase was warranted, the Department analysis resulted in a reduced increase relative to the requested amount.

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 would take effect 60 days after the company has notified its policyholders.

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