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.
