Insurers with blocks of in-force individual long-term care policies continued to raise rates during the fourth quarter of 2021.
Analysis limited to publicly available individual long-term care rate filings submitted to state insurance regulators that have been disposed with a renewal business effective date between Oct. 1, 2021 and Dec. 31, 2021. Rate filing information is sourced from the disposition table of the System for Electronic Rate and Form Filing documents. The calculations shown reflect information reported within the disposition page of the rate filing and do not guarantee that the insurer will see an increase of that magnitude, but it is a rough indicator of the potential annual premium change. Filings where the data on the premium impacted or filings where the disposition table was unavailable are excluded from the analysis. |
Genworth dominates top rate hike list
Genworth Financial Inc. accounted for seven out of the 10 most-impactful LTC rate increases in the period.
The most significant rate hike was approved in Minnesota where Genworth could see its annual calculated premiums rise by $19.9 million once the 52.0% increase is fully implemented. The increase will be phased over two years and stands to impact roughly 14,280 policyholders.
Allianz SE's Allianz Life Insurance Co. of North America and New York Life Insurance Co. were also on the list of having some of the most-impactful LTC rate increases in the fourth quarter of 2021.
A 109.2% rate increase for Allianz Life Insurance approved in Virginia is expected to add $3.9 million in premiums. According to the filing, the requested rate hike is considerably lower than what the insurer can actuarially justify. Including the most recent approval, the cumulative rate increases are roughly 197% on those Virginia policies.
Genworth, Allianz record largest potential premium increases
Genworth's calculated annual premium increase of $72.6 million was the biggest aggregate total in this analysis. The company had 34 filings approved with renewal business effective dates during the fourth quarter of 2021. In total, the rate changes will apply across 14 states and impact almost 87,000 policyholders.
Allianz had the most approved filings with renewal dates during the last three months of 2021. The 39 filings could potentially boost the insurer's individual LTC premiums by $12.6 million per year.