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Independent for over 60 years, Milliman delivers market-leading services and solutions to clients worldwide. With no agenda, other than getting it right.

Through a team of professionals ranging from actuaries to clinicians, technology specialists to plan administrators, we offer unparalleled expertise in employee benefits, investment consulting, healthcare, life insurance and financial services, and property and casualty insurance.


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CORAL: A roadmap for ACA

CORAL helps you quickly estimate relative values of health benefit plans.


A sophisticated tool that enables DC plan sponsors to deploy an age-based, asset-allocation strategy.

Premium deficiency reserve requirements for accident and health insurance

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In the United States, premium deficiency reserves (PDRs) are one of several categories of accident and health liabilities required under statutory accounting principles, GAAP, and by actuarial standards of practice. The topic of PDRs has been discussed in various authoritative guidance materials and also in published actuarial literature. Despite all of this published information, issues concerning the calculation and reporting of this reserve are still interpreted differently among various industry professionals such as actuaries, accountants, and insurance regulators.

Professional disagreements on PDRs often arise because of the level of perceived authoritativeness of source documents. Confusion also arises from the lack of specificity, inconsistency in terminology, and apparent contradictions among the documents. In order to bring some clarity to this issue, this report addresses 15 key questions surrounding statutory PDRs.