112: Strategies for Managing the Monthly Medical Insurance Valuation Process
Down syndrome, autism and cerebral palsy - these are conditions that manifest at birth or in early childhood. They result in lifelong impairments. The economic costs can be hundreds of thousands or even millions of dollars over the life of the child. Families must pay for direct costs not covered by health insurance and indirect costs such as the loss of earnings when a working parent must tend to the child. Presenter David Morel will propose an insurance product to respond to this financial risk. There will almost always be some restatement of IBNR reserves. The best method or combination of methods to use in a particular situation may be dependent upon factors and actuarial judgment that cannot be tested through a scientific model. While management may continually inquire about the level of restatement, the actuary is aware that restatements will not go away. This paper’s focus is on the management of the IBNR process.
