Mar 14 2014
It is important to note the following when considering the ramifications of this data:
- The main driver behind the high large claim trend is due to an increase in the frequency of large claims as opposed to their severity.
- The leveraged trend for large claims over $500K was even higher at 26.1% (i.e., trend for the claims costs in excess of $500K).
May 13 2013
While reinsurance arrangements are frequently utilized by property and casualty insurance companies to mitigate the effects of catastrophic losses, life and health insurance carriers historically have been less likely to employ reinsurance tools. In the post healthcare reform market, health insurance companies may benefit from acquiring reinsurance coverage. Most notably, the elimination of individual lifetime maximums creates new exposures for health insurers never seen before. This article demonstrates the difference between different types of reinsurance arrangements and how they may potentially be utilized by health insurance carriers—most notably Excess of Loss Reinsurance.
Pro Rata vs. Excess of Loss Reinsurance | MyNewMarkets.com
Apr 30 2013
2014 market reforms under the Affordable Care Act, effective January 1, 2014, are spurring interest in excess reinsurance for medical blocks of business.
The article Implementing the Affordable Care Act: State Action on the 2014 Market Reforms, published by The Commonwealth Fund, examines new state action on a subset of ACA protections, such as guaranteed access to coverage and a ban on pre-existing condition exclusions that go into effect in 2014. While the article looks in detail at state action, it also provides an overview of seven market reforms under the Affordable Care Act that will be effective next January. Guaranteed issue, waiting periods, rating requirements, pre-existing condition exclusions, essential health benefits, out-of-pocket costs, and actuarial value are all paying a role in spurring interest in excess reinsurance coverage for medical blocks of business.
Implementing the Affordable Care Act: State Action on the 2014 Market Reforms | Commonwealth Fund Issue Brief
Mar 25 2013
Enrollment Increase for Self-Insured Companies
There is rising opportunity for stop loss business with self-funding up. Mark Farrah Associates present key findings of third-party administrators, in particular those for ASO business for health insurance companies, in this review.
Health Insurance Enrollment in Self-Insured Companies Up Significantly | Mark Farrah Associates
Feb 19 2013
Unlimited Maximums and Their Impact on Carrier Risk
Munich Health North America, Inc. recently published a newsletter dealing with unlimited maximums and their impact on carrier risk, along with other pertinent issues. Joseph Sabol, Vice President, Senior Underwriter for Munich Re points out that, “because so many carriers have been operating for years with annual policy maximums in place, they may now have a false sense of security that doesn’t match the new environment.” As an actuary at BCS, I wanted to share this article with you so that we can all gain a better perspective on potential effects of the post-healthcare reform environment on our risk.
New Carrier Risk in a World of Unlimited Maximums | Munich Health
Jan 25 2013
Enabling the System to Reinsure its Future