By Greg Iacurci
The cost increases, approved by regulators in the second quarter, affect roughly $160 million of in-force premiums
Genworth Financial Inc. received approval from state regulators this year to raise costs an average 58% on some long-term-care insurance policies, affecting tens of millions of dollars’ worth of annual insurance premiums the company receives from consumers.
The approvals, which other insurers are also pursuing to offset adverse trends in the long-term-care industry, come as companies such as Prudential Financial Inc., Unum Group and CNO Financial Group announced financial setbacks related to their long-term-care businesses.
Thomas McInerney, president and CEO of Genworth, which is the largest LTC insurer by number of policyholders covered, said the company received approvals for 22 state filings in the second quarter.
The approvals, which sought rate increases as part of Genworth’s “long-term-care insurance rate action plan,” impact $160 million of in-force premiums, Mr. McInerney said during the company’s quarterly earnings presentation. Affected consumers will see an average weighted cost increase of 58%.