November 2016 Carrier Updates

Last Updated: November 29

John Hancock

  • Important Update on Our Individual LTC Insurance Products. This is to inform you of an important development concerning our long-term care (LTC) insurance product portfolio. John Hancock has recently completed another comprehensive claims study, which we generally conduct every three years and which examines the usage trends for our insured population. Similar to our previous analysis, the new data demonstrates that claims, particularly at higher ages, continue to last longer than expected, and more policyholders are initiating claims at older ages than previously expected. Based on that data, we have determined that there is a need to increase premiums on certain policy series. As a result, this month, we will begin filing for an increase of premiums on certain individual long-term care policy series. We will be requesting an average increase of approximately 20% across most of our LTC insurance business. This amount assumes that we were permitted to implement the full amount of the increases we have requested in the past. The actual amount requested will vary by state based on the amount and timing of previous rate increases. Increases will also vary depending on the policy series, issue age, inflation option, and benefit period. All proposed rate increases will be filed with state insurance regulators, and will only be implemented in a particular state once we are permitted to do so.

Need help with any of John Hancock's products?
Call us at 1-800-823-4852 or click here to email our Brokerage Sales Support team.

Met Life

  • Dividends to be paid in 2017. MetLife and the insurance company subsidiaries of Brighthouse Financial expect to pay a total of approximately $1.27 billion in policy dividends to eligible life insurance policyholders in 2017. This payment demonstrates our continued commitment to providing policyholders with value now and in the long term. MetLife’s disciplined approach to managing risk and making sound financial decisions has enabled us to continue our long history of providing dividend payments to our participating life insurance policyholders. Click the link above for details.
  • Compensation changes effective Nov. 18. As of November 18, 2016, compensation for policy face amount increases and additional riders will be reduced from first-year commissions to renewal compensation. In order to be considered for first-year commissions on policies with face amount increases and riders, these changes must be issued on the policy and placed by November 17, 2016.
  • Compensation changes effective Jan. 1. As of January 1, 2017, MetLife will stop annualization of first year commissions on monthly premiums for new life business processed after this date. In order to be considered for annualization, cases must be paid and placed by December 31, 2016.

Need help with any of Met Life's products?
Call us at 1-800-823-4852 or click here to email our Brokerage Sales Support team.

Mutual of Omaha

  • Rate Adjustments Effective Feb. 1, 2017. Long-Term Care insurance (LTCi) is a core product for Mutual of Omaha and we intend to remain a key player in this market for years to come. In order to fulfill this commitment, we actively monitor emerging industry trends as well as our own experience so we can make the adjustments necessary that will allow us to keep our promises to  policyholders and remain competitive in the marketplace. For this reason, we will be implementing rate adjustments effective February 1, 2017. Impacted states include Alaska, District of Colombia, Hawaii, Massachusetts, New Jersey, Pennsylvania, South Carolina, and Virginia. Click the link above for details.

Need help with any of Mutual of Omaha's products?
Call us at 1-800-823-4852 or click here to email our Brokerage Sales Support team.


  • A.M. Best Financial Strength Rating Update. A.M. Best has downgraded the Financial Strength Rating to A (Excellent) from A+ (Superior) and the Long Term Issuer Credit Rating to “a+” from “aa-” of The Savings Bank Life Insurance Company of Massachusetts (SBLI-MA) (Woburn, MA). The outlook of these Credit Ratings (ratings) has been revised to stable from negative. The ratings of SBLI-MA reflect its strong brand and position as a low-cost term life insurance provider in its target market, offset by product concentration and declining surplus and capital trends. The ratings downgrades reflect SBLI-MA’s overall modest profitability, reliance on reserve financing and modestly lower quality of capital relative to peers. While capitalization is reduced from historical higher levels, risk-adjusted capital remains acceptable for the ratings. A.M. Best notes SBLI-MA’s efforts to diversify its product mix through growth in its BOLI business along with continued geographic expansion outside of Massachusetts. However, the company’s in-force business profile, which is concentrated in term life sales, remains narrow in scope. While A.M. Best views SBLI-MA’s diversified sales growth positively, a more broad-based liability profile and higher returns is not anticipated over the short to medium term. Earnings have fluctuated in recent periods due to a combination of costs associated with infrastructure investment and new business sales strain along with mortality results, which were pressured by higher claims due to the social security death match industry issue in 2014.

Need help with any of SBLI's products?
Call us at 1-800-823-4852 or click here to email our Brokerage Sales Support team.

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