FE Rate Increases before year end

[damadcrapper]

Has anyone heard of any FE carriers that will be increasing rates before year end? I understand that claims and higher required reserves have impacted many of our favorites.

 

[Newby]

Trinity has some underwriting changes taking effect November 8th. Mainly they will no longer take Diabetic Neuropathy at preferred and it will go graded. They are also going to pay 105% on debit card business rather than the usual 110%

 

[Allen Trent]

Has anyone heard of any FE carriers that will be increasing rates before year end? I understand that claims and higher required reserves have impacted many of our favorites.

If they have not yet, most will have to before year end. Regulatory non-forfeiture interest rates have dropped meaning the lower rates need to be used in pricing assumptions.

Plus, like your said Covid death claim may also get priced in by some carriers, but luckily most carriers use the motlrtality tables that have not been updated or changed since covid.

The low interest rate environment is definitely impacting.

 

[jdeasy]

Has anyone heard of any FE carriers that will be increasing rates before year end? I understand that claims and higher required reserves have impacted many of our favorites.

Most of the high priced companies took rate increases already. Trans took a rate decrease and says that will remain in place. No further changes. KSKJ has announced there will be no rate changes. Same for Trinity/FBL. Oxford took a small rate increase.

Companies do have to make accounting changes by Jan 1, 2022. But those changes do not have to be rate increases.

Rate increases are the easy way out though and gives them an excuse. But not every company is taking that route.

 

[rousemark]

Has anyone heard of any FE carriers that will be increasing rates before year end? I understand that claims and higher required reserves have impacted many of our favorites.

United American has a announced a "modest" increase to take effect on December 1, 2021

 

[jdeasy]

Seems many, if not most, are adjusting on how and when the cash values accumulate.

Internal adjustments. I would have thought they would accumulate cash slower but one company told me it has to be quicker.

So who knows? I just know the answer doesn’t have to be raising rates.

 

[noah]

Trinity has some underwriting changes taking effect November 8th. Mainly they will no longer take Diabetic Neuropathy at preferred and it will go graded. They are also going to pay 105% on debit card business rather than the usual 110%

Who’s left that takes diabetic neuropathy level ? RNA ?

How much was Senior Life paying on debit card business ?

 

[rousemark]

Who’s left that takes diabetic neuropathy level ? RNA ?

How much was Senior Life paying on debit card business ?

What bout Standard Life and Casualty? They ask: Within the past 60 months have you been treated by a member of the medical profession for: Insulin shock, diabetic coma, diabetic retinopathy, or hospitalized two or more times for any diabetic complications?

They do not mention neuropathy...

 

[Baseball7]

Who’s left that takes diabetic neuropathy level ? RNA ?

Trans is back, and I doubt we’ll see any changes out of AmAm.

Great western has a new Q1 2022 product coming out.

 

[Allen Trent]

Seems many, if not most, are adjusting on how and when the cash values accumulate.

Internal adjustments. I would have thought they would accumulate cash slower but one company told me it has to be quicker.

So who knows? I just know the answer doesn’t have to be raising rates.

Lower regulatory interest rates mean it takes more CV at lower interest to endow at age 100 like all WL must do. So, premiums have to increase for same death benefit, but will accumulate cash value quicker. I believe the only way a carrier won't be taking rate increase is if they were already using the lower non forfeiture interest rates before this year when the new lower Sustained interest rates kicked in. Regs force it to happen after X number of months or quarters of low Treasury rates, etc.