Description: From the 1960 Transactions Vol. 12 No. 32, this paper provides a comprehensive introduction to nonproportional reinsurance and its application in life and health insurance, and employee benefit plans. The author defines the various types of reinsurance and notes that to date nonproportional reinsurance has not been widely used in the U.S. for life insurance, and explores areas for possible application. Theoretical aspects such as formulas for premium determination are also discussed.

Description: In calculations involving the distribution of total claims in a risk theory setting, several authors have found it desirable to approximate a risk-theoretic distribution by use of the incomplete gamma function. A recent paper evaluated an excess loss ratio premium by use of a gamma distribution whose first and second moments agreed with those of the risk-theoretic loss distribution. A discussion of that paper pointed out that a translated gamma distribution allowed one to make the approximate distribution agree with the risk-theoretic distribution as far as the first three moments are concerned. The method presented in this paper allows one to make as many moments of the approximate distribution as desired agree with those of the risk-theoretic loss distribution. From Transactions of Society of Actuaries 1966, Vol. 18, Pt. 1, No. 52.

Description: Employer stop loss is an insurance coverage offered to employers who self-fund their employee benefits program pursuant to an ERISA plan document. From Reinsurance Section News, November 2007, Issue No. 61.

Description: 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.

Description: September 2015 Reinsurance News

Description: Panel discussion of prospects for cost containment of, and alternatives to, fee-for-service health care, and management of health care under national health insurance. Discussion points include cost containment devices, HMOs, economic impact, cost escalation, self-insurance, stop-loss, claims administration, loss of state premium taxes, and Phase 3 tax problems under NH1.

Description: This article looks at stochastic techniques actuaries can use to quantify the non-market risks in insurance products and how stochastic techniques can be used in the evaluation of reinsurance arrangements.

Description: 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.

Description: Adding aggregating specific provisions to individual stop loss contracts reduces premium outlay but often priced incorectly by insurers. Includes lasering concept. Issue No. 46.

Description: This session provides an overview of industry approaches to valuing the liabilities of nontraditional health products such as specific and employer stop loss, provider excess and critical illness. From the Record of the Society of Actuaries, Volume 29, No. 2, Session 117