Description: Reinsurance reduces the required capital of the primary insurer but increases that of the reinsurer. Capital is costly. All capital costs, including that of the insurer and the reinsurer, are ultimately borne by primary policyholders. Reducing the total capital of insurers and reinsurers brings down the total capital cost and the total primary policy premium. A reinsurance arrangement is considered optimal—if it minimizes the total required capital. This optimal reinsurance is an attracting equilibrium under price competition. Evidence suggests an inverse relationship between the total required capital and the correlation between the losses held by different insurers and reinsurers. Examples are constructed to examine this and other properties of the optimal reinsurance.

Description: Performance measurement is not the primary purpose of either GAAP or statutory accounting. This article discusses alternative methods of reporting used by life insurance companies to better measure financial performance.

Description: Presented at September 1995 Valuation Actuary Symposium. Discusses the Health Organization Risk-Based Capital formula.

Description: Discussion of the economics of a possible H5N1 pandemic, and its impact on Life, Health, and Property and Casualty insurers, in terms of areas of risk, especially underwritng risk, operations risk, and market risk.

Description: This panel will discuss the current status of NAIC activities with respect to risk-based capital RBC. The potential impact on financial reporting with respect to health products, specifically, indemnity, HMO, disability, and nontraditional products will also be discussed. From the Record of the Society of Actuaries, Vol.21, No. 4a.

Description: The presenters describe the process payers and employers can use to evaluate emerging medical device technologies, recent or pending FDA submissions for prescription drugs and experimental treatments that impact patient care, resource utilization and health care expenditures. Learn the process of identifying and selecting impactful treatments (Horizon Scanning) and quantifying the financial cost of new technologies before they arrive in the market. These workflows can be leveraged by actuaries, healthcare economists, clinicians and pharmacists from a payer (Commercial and Medicare) and employer perspective for self-funded plans. Walk through sample models that illustrate how costs for emerging technologies and treatments can be modeled.

Description: Presented at October 1996 Annual Meeting. This session presents and discusses the NAIC's model bill for risk-based capital as it relates to health insurance.

Description: Research projects in pension - Pension Risk Management: Derivatives, Fiduciary Duty and Process.

Description: Presented at June 1996 Spring Meeting. This session presents various perspectives on RBC ratios, including pricing, solvency, and the view of company management.

Description: Presented at June 1996 Spring Meeting. A panel of experts discuss risk management and capital management issues for disability insurers and the potential role of reinsurance.