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 Jan. 1, 2022, and Jun. 30, 2022. 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. Filings where the data on the premium impacted or filings where the disposition table was unavailable are excluded from the analysis.
Regulators across the U.S. continued to sign off on long-term care insurance rate-increase requests during the first half of 2022.
Genworth, Mutual of Omaha to see largest premium increases
Genworth Financial Inc. accounted for half of the 10 most-impactful LTC rate hikes in the period. Its calculated annual premium increase of $84.5 million was the largest aggregate total in this S&P Global Market Intelligence analysis. The aggregated increase was spread over 14 states and the District of Columbia, with the two largest calculated premium hikes of $9.7 million occurring in Virginia and Ohio. Policyholders experienced average approved rate increases of 36.1% and 65.4% in those respective states.
In Genworth's first quarter earnings call, CEO Thomas McInerney said the insurer has been able to significantly reduce the premium shortfall on its legacy LTC business. Based on Genworth's estimates, it could still take five more years to reach economic breakeven on its legacy business.
McInerney noted that regulators have quickened their pace in approving the increases; however, the implantation of these increases could take several years and many are "well below" the actuarially justified amounts.
Affiliates of Mutual of Omaha Insurance Co. also boosted rates on in-force blocks of business that renewed during the first half of the year impacting roughly 33,000 policyholders in at least 19 states plus D.C. All told, those increases are expected to raise the insurer's annual premiums by $40.4 million.
* Download a spreadsheet with details of the annual long-term care reporting forms 1 and 2 supplement.
* Read an article about the 2021 operating performance within the long term care business line.
John Hancock gains ground in the Keystone State
Manulife Financial Corp.'s John Hancock Life Insurance Co. (USA) is expected to see the third-largest cumulative premium increase at $29.3 million. The insurer's most impactful filing was in Pennsylvania where it is estimated to see its annual calculated premiums rise by $7.5 million once a 59.1% hike is fully implemented.
The increase will be phased over three years and stands to impact around 4,700 policyholders. More than one-fourth of John Hancock's calculated premium change will come from this approved filing in the Keystone State.
