The introduction of COVID-19 had an almost immediate influence on insurance variables, from exposure levels, claim development, and litigation rates to trends, yet it may take a long time to realize the effects. As a result, typical benchmarks and the process of benchmarking that has worked well in the past may no longer be applicable.
With many users and applications of benchmarks, how can benchmarks continue to be useful when consistency has been significantly disrupted? How did COVID-19 make an impact on common metrics and statistics used in benchmarking? What are strategies to make benchmarks valuable now and post-COVID-19?
In this paper, Milliman consultant Richard Frese examines property and casualty (P&C) benchmarking in a new era affected by COVID-19.
Companies should try to avoid any conflict of interest when subscribing to the principles under the Sarbanes-Oxley Act. When determining if an actuarial firm is independent, a company can ask two questions: Is the actuarial firm a provider of another service to your company? Does the firm present any possible conflicts?
In the article “Why independence matters in actuarial services,” Milliman’s Richard Frese and Tony Bloemer discuss how actuaries in various roles interact with key decision-makers and the business benefits of working with an independent actuary.
Self-insureds that understand the factors used by actuaries to project workers’ compensation losses can better integrate them into their projection processes and benefit from insightful discussions with actuaries. Milliman consultants Carly Rowland and Richard Frese offer some perspective in the Business Insurance article “Ten considerations for projecting self-insured workers compensation losses.”
With mergers and acquisitions (M&As), it is critical that the medical professional liability insurance program be properly accounted for. Unpaid losses and loss adjustment expenses associated with the program can be a significant item on a balance sheet. There can be both substantial benefits and dangers associated with M&As that are important for management to consider in the preliminary stages of the M&A process. Milliman’s Richard Frese and Andy Hoffman provide perspective in this article.
This article was published in the February 2017 issue of Inside Medical Liability.
In this article, Milliman’s Richard Frese and Andy Hoffman offer organizations perspective concerning critical topics they should discuss with an actuary to enhance their insurance program, better manage liabilities, and maintain appropriate actuarial analysis for the needs of their program. The authors also discuss best practices when working with an actuary.
This article was published in The Risk Management Quarterly.
A captive insurance program can offer healthcare organizations several benefits such as broader coverage, improved cash flow, and direct access to reinsurance markets. However, not every organization is suited for a captive. Its management must assess the benefits and drawbacks before creating one. Milliman’s Richard Frese provides perspective in his article “Captive insurance: Is it the right choice for your insurance exposures?” He also discusses the background of captives, how organizations should choose a domicile, selecting coverage policies, actuarial analysis for loss projections, and considerations when shutting down a captive.