As state insurance regulators contemplate a proposal to create separate long-term care insurance facilities, one impaired and the other solvent, regulators continue to accept rate increases for insurers' in-force policies.
The run-off proposal is one of a number of options insurance commissioners are considering to address the industry's long-term care problems, Peter Gallanis, head of the National Association of Life & Health Guaranty Associations, said Aug. 6 during the National Association of Insurance Commissioners summer meeting in Philadelphia.
"Until you have addressed the issue of funding sources, you have not solved this problem," Gallanis said.
Regulators approved rate hikes on 133 filings for qualified long-term care insurance policies, with a renewal business effective date during the second quarter of 2017. John Hancock Life Insurance Co. (USA), which exited the individual long-term care market in November 2016, had the biggest calculated premium change of $16.6 million, based on an analysis by S&P Global Market Intelligence.
The bulk of the increase for John Hancock occurred in Connecticut, as regulators approved a 60.8% hike for an additional $15.6 million in calculated premiums. Although the insurance company may not receive the full impact of the increase, the calculated premium change provides a rough estimate of what it may receive.
For the first time, SILAC LLC landed in the analysis after it acquired Equitable Life & Casualty Insurance Co. during the quarter. Equitable Life is seeking an additional $1.8 million of premiums spread across 1,525 policyholders.
AEGON NV subsidiary Transamerica Life Insurance Co. was granted premium increases in three states during the second quarter. Most notably, regulators in Wisconsin granted a 90.0% rise in rate for an additional bump in premium of $9.2 million, while the $3.5 million increase in Pennsylvania will impact 1,867 policyholders.
The insurance department in Texas approved a rate change of 160.3% for Prudential Insurance Co. of America, which will potentially add $2.6 million in premiums for the insurer.
Wisconsin saw the highest weighted-average increase in LTC rates, at 81.8%. South Carolina and Oklahoma saw the highest number of filings, at nine, for an increase of 16.8% and 7.8% respectively.
S&P Global Market Intelligence offers a variety of tools to analyze the rate and product filings of insurance companies.
Click here for a webinar with information on the resources S&P Global Market Intelligence has available regarding rate filings.