The objective of the paper is to study and analyze the optimal reinsurance designs associated with two of the most common reinsurance contracts: the quota share and the stop loss. This paper provides further analysis on two optimal reinsurance models.

Topics covered will include a description of the types of traditional and financial reinsurance solutions currently being used and how the practicality of these solutions differs between Canada and the United States. The panel will also offer their thoughts regarding how to ensure that a company's risks are appropriately managed through reinsurance in today's challenging economic environment. At the conclusion of the session, attendees will be able to identify the types of reinsurance that may be helpful in managing their companies’ risks. They will benefit from learning how different companies have achieved success with various tools and why.

This session will provide an update in the stop loss market including claims trends and pandemic experience. From the SOA 2010 Health Meeting, Session 20

Excess Reinsurance is a coverage purchased by insurance carriers to limit loss in a year from any one claim. This article addresses the issues when purchasing medical excess reinsurance on a medical portfolio. The most important consideration in the reinsurance purchasing decision is determining the risk objectives of the organization. The proper risk analysis by the carrier or in conjunction with its reinsurer will address the following questions: What is predictable risk versus unpredictable risk?

Different kinds of renewal equations repeatedly arise in connection with renewal risk models and variations. It is often appropriate to use bounds instead of the general solution to the renewal equation due to the inherent complexity. For this reason, as a first approach to construction of bounds we employ a general Lundberg type methodology. Second, we focus specifically on exponential bounds, which have the advantageous feature of being closely connected to the asymptotic behavior for large values of the argument of the general solution. Third, we incorporate cumulative distribution functions directly into the bounds themselves. In particular, the results obtained are applied to the probability of ultimate ruin when the zero-modified compound geometric model for aggregate claims is assumed. This particular model may naturally be viewed as a discrete analog of the classical compound Poisson model and is of considerable interest in its own right. Finally, in an aggregate claims context, bounds for the stop-loss premium are derived. From Actuarial Research Clearing House 2004, Vol. 1.

This session will provide an update in the stop loss market including claims trends and pandemic experience. From the SOA 2010 Health Meeting, Session 20

Presented at June 2007 Health Meeting. Presents following issues for discussion: product, risk management, and market developments in employer stop loss.

Medical stop-loss reinsurance continues to play a vital role in containing employers’ health care costs. Managing general underwriters [MGUs], who originally handled these programs, have lost market share to large direct writers. This article discusses how health care reform and highly disciplined underwriting tools offer growth opportunities to MGUs.

This presentation discusses a process for determining the minimum reinsurance retention level consistent with defined parameters. The conclusions reached were: 1. Under PDS dependence, optimal reinsurance strategy is multivariate stop loss form. 2. Explicit solutions could be derived in certain bivariate model. 3. Binding and unbinding constraints are equivalent. From Actuarial Research Clearing House, 2012, Vol. 1.

A proposal to address provider payment issues by gradually moving to accountable care organizations. Capitations would be risk-adjusted, non-capitated costs would be covered by hospitalization fund and stoploss, incentives for quality & effective preventive care would be tied to the amount remaining in the fund, and government involvement would be through incentives rather than mandate.