Manulife your group renewals SUCK

I have been contacted by Standard Life in the past for kind words I wrote here on their behalf. Apparently they have internet monkeys scouring the inter-tubes looking for any reference of their company name, so here is hoping Manulife is listening.

I've recived three group insurance renewals in the last few days from Manulife. They have all sucked, hard. The rates they are proposing are a joke. I am used to Manulife and other carriers trying to get away with a little bit of extra fat on a renewal, but these have been a joke. Clients with good claims have been hit with increases when a decrease should have been provided. God help the clients with bad claims, they might as well just pack up and go home. I dont know if Manulife is trying to lose business or what?

For example: I'm working on a renewal right now which takes effect March 1 2010. Carriers usually provide the claims and premiums paid for the past year less a month. So the March renewal should have March 1 2009 to January 31, 2010. Maybe 2 months of lag, so claims too the end of December. Manulife's renewal only has experience to October 31, 2009. What about November or December? I know it takes time to prepare a renewal and the claims aren't always up to date but October? Come on, you can do better.

Same group, dental premiums paid $10,411.20; total claims incurred $6,568.92 or 63% of premium. Manulife says their administration is 25% of premium and trend is 8%.

Sooooo 63% plus 25% plus 8% = 96% of premium paid.

I see this and expect a 4% decrease in rates. What does Manulife ask for? 10.95% INCREASE, are you insane? That's a 15% spread who are you trying to fool?

Same thing for another group, claims are 96% of premium, ok thats bad, claims are high, the target was 75% so they are 21% over, an increase is justified. Trend is 15% for health, admin is again 25%.

96% plus 15% plus 25% = 136% of premium, so a 36% increase is justified.

Manulife wants 48.33% increase. NO just NO. I talk to an underwriter and they inform me they have already reduced the rate internally, the original increase was going to be north of 60%. I'm dumbfounded. Manulife originally calculated that they needed nearly double the rate increase I consider fair.

Manulife, if your reading this, PLEASE look at your underwriting, the rates you are coming up with are totally out to lunch. There is no way I can support rate increases like this, it is hard enough that I have to fight you every renewal to get a fair rate but when you are asking for colossal rate increases when none is justified, the client is just going to go elsewhere. You are a good carrier, one of the best, your admin and website rock, you pay claims quickly and accurately, but your pricing sucks.

Brutal.