The Connecticut Insurance Department has rejected efforts by a unit of MetLife Inc. (NYSE:MET) to increase rates on 5,800 long-term care insurance (LTCI) policies about 58 percent.
“Connecticut experience has been much better than anticipated from inception-to-date on a loss ratio basis,” Paul Lombardo, a Connecticut department actuary, wrote in a memorandum explaining the decision.
Because the Connecticut experience has not been contributing to any problems with nationwide experience, “we believe that any increase at this time would be excessive,” Lombardo wrote.
Metropolitan Life Insurance Company, an insurance company subsidiary of MetLife, sold the LTCI policies in Connecticut from 1999 to 2012. The company has since stopped selling LTCI coverage.
Metropolitan Life has not increased rates on any of the policies. It made an unsuccessful effort to get Connecticut regulators to let it increase rates on two of the blocks in 2010.
A Metropolitan Life representative said in a statement that the company believes actuarial assumptions have changed since the LTCI policies involved in the rate increase applications were priced.
“MetLife is currently evaluating the Connecticut Insurance Department’s decision and will, as appropriate, further explain why a rate adjustment is warranted,” the company representative said.