The Connecticut Insurance Department has posted rate filing information for several blocks of long-term care insurance (LTCI) business in recent weeks.
Insurers filed applications for rate increases for the blocks in December.
The rate filings cover:
95 individual Connecticut policies issued by American General Life Insurance Company, a unit of American International Group Inc. (NYSE:AIG), in the 1990s.
524 individual Connecticut policies issued by Teachers Insurance and Annuity Association of America (TIAA) from 1991 through 2004.
2,817 group Connecticut policies issued by Metropolitan Life Insurance Company, a unit of MetLife Inc. (NYSE:MET) before 2010.
American General asked for a 19 percent increase, saying that it now believes the loss ratio will be about 97 percent. The company originally estimated the loss ratio would be a little over the state minimum of 60 percent.
Officials rejected the American General increase request, saying that the company has applied only 8 percent of a 20 percent increase it was granted in June 2013.
Metropolitan Life, the administrator for the TIAA LTCI block, asked for a 22.68 percent increase, saying the expected demand for benefits has far exceeded the original pricing expectations.
Officials approved the Metropolitan increase request for the TIAA block, noting that the actual loss ratio for the block appears to be 86 percent and could eventually exceed 100 percent. Metropolitan Life will phase in the TIAA rate increase over a three-year period, officials say.
Metropolitan Life asked for a 45 increase for its own 2,817-policy block of group LTCI business. It could increase the average annual premium for a Connecticut coverage holder to $1,272, from $877 today. Connecticut department officials are still considering that request.