Insight

Milliman insight from around the world

24 February 2020 - By Nina M. Lantz, Rex Barker, Timothy L. Connor, Stuart Kliternick, Joel E. Stewart, William Wade

Milliman’s December 2019 Multiemployer Pension Funding Study reports on the estimated funded status of all U.S. multiemployer defined benefit plans as of December 31, 2019.

24 February 2020 - By Brian N. Anderson, Greg Callahan

One of the most important ways plan sponsors can lower healthcare costs without significantly changing their benefits is to look for opportunities to improve their pharmacy benefit manager contract.

21 February 2020 - By George Barrett, Claire Booth, Tanya Hayward

How has automation affected—and how will it continue to affect—the nature of insurance companies’ processes and the nature of their clients’ needs?

20 February 2020 - By Thomas M Carrabine

With rising healthcare costs and people living longer, trustees of multiemployer plans may want to ask themselves: How can we better support our members in retirement when addressing healthcare costs?

20 February 2020 - By Neil Dissanayake, Paul Fulcher, Emma Hutchinson, Peter Lin, Dmitry Zamkovoy, Sihong Zhu

The European Insurance and Occupational Pensions Authority recently published its first discussion paper on IBOR transition.

19 February 2020 - By Neil Dissanayake, Peter Lin, Nima Shahroozi

After a very strong performance in 2019, equity markets started 2020 on the back foot due to fears of a coronavirus outbreak and rising tensions between the US and Iran.

19 February 2020 - By Andrew Dilworth, Paul R. Houchens

This report provides an analysis of the recently released 2019 Centers for Medicare and Medicaid Services Medicaid and Children’s Health Insurance Program Scorecard.

18 February 2020 - By Eoin O'Baoighill, Gillian Tucker, Divey Hiranandani, Gavin Maher

Non-life (re)insurers are continuing to take a growing interest in data science. Here we discuss the results of a recent survey of activity in this area.

18 February 2020 - By T. Scott Bentley, Nick Ortner

This report is Milliman’s triennial summary of estimated U.S. average utilization, billed charges, and resulting per member per month costs for organ and tissue transplants.

14 February 2020 - By Julia M. Friedman, Brett L. Swanson, Mary G Yeh, Jordan Cates

This report highlights key changes in member premiums and benefits for the 2020 Medicare Advantage (MA) market, as well as the contributing factors for, and the magnitude of, the increase in value added within the MA market each year from 2016 to 2020.

14 February 2020 - By Joanne E. Fontana, David Bahlinger, Michael E. Weilant

Milliman’s 2019 Dental Survey represents 50 carriers and $31.5 billion of inforce premium.

14 February 2020 - By Robert Eaton, William G. Mehilos, David Bahlinger, Michael E. Weilant

Milliman’s 2019 Worksite Life Survey represents 21 carriers and $2 billion in inforce premium.

14 February 2020 - By Robert Eaton, William G. Mehilos, David Bahlinger, Michael E. Weilant

Milliman’s 2018 Worksite Life Survey represents 13 carriers and nearly $1.7 billion in inforce premium and focuses on term, whole life, and universal life products.

13 February 2020 - By David Bahlinger, Darrell D. Spell, Michael E. Weilant

Milliman’s 2019 Accident Insurance Survey represents 42 carriers and $2.4 billion in inforce premium.

13 February 2020 - By Ashlee Mouton Borcan, Jennifer O’Brien Howard, David Bahlinger, Darrell D. Spell, Michael E. Weilant

Milliman’s 2019 Hospital Indemnity Survey represents 32 carriers and $1.3 billion in inforce premium.

13 February 2020 - By Ashlee Mouton Borcan, David Bahlinger, Jennifer O’Brien Howard, Darrell D. Spell, Michael E. Weilant

Milliman’s 2017 Hospital Indemnity Survey represents 23 carriers and $1.3 billion in inforce premium in the hospitality indemnity market.

12 February 2020 - By Susan J. Saip, Carl A. Friedrich

In 2019, Milliman conducted its second biennial broad-based survey on term life insurance.

11 February 2020 - By Charlie Mills, Chris Smith

This paper explores the minimum savings rate (MSR)/minimum loss rate (MLR) options available to accountable care organizations (ACOs) and presents perspective on what ACOs should consider when selecting the MSR/MLR under a Medicare Shared Savings Program track with downside risk.

10 February 2020 - By Milliman Employee Benefits Research Group

Monthly benefits news and developments in the United States.

10 February 2020 - By Charles J. Clark, Zorast Wadia

In January, the funded status of the 100 largest corporate defined benefit pension plans fell by $73 billion as measured by the Milliman 100 Pension Funding Index.

08 February 2020 - By Christine M. Mytelka, Susan E. Pantely, Catherine E Lewis , Katherine Wentworth, Nick A Bauman

State program directors face many complex considerations as they evaluate the Healthy Adult Opportunity 1115 waiver option.

06 February 2020 - By Ram Kelkar, Daren Lockwood, Xiaohong Mo, Adam Schenck

The expected hedge cost for a hypothetical GLWB block is estimated to be 200 bps as of the end of January 2020.

06 February 2020 - By Charles J. Clark, Deborah Lachner

The new SECURE Act might have a few surprises for employers and their TPA business partners when it comes to managing retirement plans.

04 February 2020 - By Judith-Anne Brelih, Jonathan B. Glowacki

The latest monthly estimate of the lifetime default risk of U.S.-backed mortgages.

04 February 2020 - By Sam Shellabarger, Charlie Mills, Lance D. Anderson

What are the potential effects of prospective and retrospective assignment on key accountable care organization metrics under the Medicare Shared Savings Program?

04 February 2020 - By Matthew McIlvanna, Sinéad Clarke, Aisling Barrett

This briefing note highlights some interesting information published in the Solvency and Financial Condition Reports of life insurance companies in Ireland at year end 2018, focussing on premiums, investments and solvency coverage.

03 February 2020 - By Sinéad Clarke, Diana Dodu, Tanya Hayward, Judith Houtepen, Lindsy Kotecki, Monika Lis, Erica Rode, Rong Yi

This paper sets out a ‘how-to’ guide to risk equalisation, or risk adjustment.

03 February 2020 - By Ian Laverty

Annuities in retirement plans such as the 401(k) may have become more attractive to consumers, plan sponsors, and annuity writers after passage of the SECURE Act.

03 February 2020 - By Matthew J. Kramer, Erica Reijula, Sam Shellabarger

What are the similarities and differences in the financial benchmark methodology between the Direct Contracting payment model and the Medicare Shared Savings Program?

30 January 2020 - By Stoddard Davenport, Ally Weaver, Marissa North

This paper studies the prevalence of mental health and substance use disorders within commercially insured families in the United States to understand the likelihood of a household being affected by these conditions.

28 January 2020 - By Grace Chang, Li Feng, Bill Matczak, Karthik Yadatore

This paper focuses on the cash flow modeling aspects of Market Risk Benefits on fixed indexed annuities contracts, especially the methodology for projecting indexed account growth.

28 January 2020 - By Haitham Aly, Phil Ellenberg, Shyam Kolli, Josh Reinstein

This paper provides a summary of the key provisions of the price transparency final rule that apply to hospitals, briefly touching on topics that require additional consideration by parties affected by the rule.

24 January 2020 - By Jessica Crowson, David Burston, Neil Christy, Stuart Reynolds, Aisling Barrett, Eoin King, Bridget MacDonnell, Kendall Carolissen, François de Wouters, Luca Cavaliere, Aldo Balestreri, Dominic Clark, Jaroslaw Lech

On 15 October 2019 EIOPA issued a second wave of consultation covering a wide range of areas.

23 January 2020 - By Eoin King, Bridget MacDonnell, Aisling Barrett

This briefing discusses an overview of the Solvency II 2020 review, the latest risk management developments and an overview of 2018 SFCR information for the Irish insurance industry.

22 January 2020 - By Joe Becker

In the life of the U.S. economy and its financial markets, 2019 was in many ways an exceptional year.

17 January 2020 - By Kelly S. Backes, Greg J. Herrle, Douglas I. Rodrigues

This paper explores the various components of Medicare Advantage revenue, avenues Medicare Advantage organizations may explore to increase their Part C and Part D revenues, and key considerations for each approach.

17 January 2020 - By Jennifer O’Brien Howard, Stacy Koron

Small companies in the supplemental health products market need to understand the unique challenges these products present in order to compete effectively.

17 January 2020

Markets were largely up for the quarter as investors reacted to easing trade tensions and reduced fears of a recession.

17 January 2020 - By Matt Cheung, Ian Laverty, Zi Xiang Low, Bill Matczak, Zohair Motiwalla

In the third quarter of 2019, Milliman conducted a survey to establish market practice in the application of VM21: Principle-Based Reserves for Variable Annuities.

16 January 2020 - By Kelly S. Backes, Katherine N. Kroening, Douglas I. Rodrigues , Gokce Yilmaz

This paper provides a brief overview of the upcoming end-stage renal disease Medicare Advantage eligibility change and key questions each Medicare Advantage organization should consider when planning for 2021.

15 January 2020 - By Joseph Boschert, Jim Hong, Kyle Ligon

This paper analyzes Medicare Advantage claims and membership data to evaluate the risk and costs associated with opioid use disorder.

10 January 2020 - By Jill S. Herbold, Melanie K. Kuester

This paper discusses several decision points and considerations for states evaluating a single preferred drug list requirement.

10 January 2020 - By Christine Jello, Suzanne Norman, Patricia L. Renzi

Women face unique obstacles in securing the necessary roadmap for retirement.

09 January 2020 - By Rob Frize, Bridget MacDonnell

On December 24, 2019 the Isle of Man Financial Services Authority announced its latest consultation on changes to the Corporate Governance Code for Insurers. This briefing note summarises the changes which relate to governance requirements for captive insurers, recovery planning and enterprise risk management frameworks.

08 January 2020 - By Milliman Employee Benefits Research Group

The President on Dec. 20, 2019, signed the "Further Consolidated Appropriations Act, 2020" into law (P.L. 116-94), funding government agencies for the remainder of the 2020 federal fiscal year (ending Sept. 30, 2020). The law includes significant provisions – some mandatory, some optional – affecting employer-sponsored retirement and health benefit plans.

08 January 2020 - By Christopher Kunkel, Jordan Pettibon

Which options do Medicare Advantage enrollees look at most when choosing a plan?

08 January 2020 - By Charles J. Clark, Zorast Wadia

The year 2019 was characterized by strong investment returns alongside sharply decreasing discount rates that resulted in an overall $30 billion drop in funded status.

07 January 2020 - By Milliman Employee Benefits Research Group

Monthly benefits news and developments in the United States.

07 January 2020 - By Ram Kelkar, Daren Lockwood, Xiaohong Mo, Adam Schenck

The expected hedge cost for a hypothetical GLWB block (see Index Methodology1) is estimated to be 182 bps as of the end of December 2019, down 10 basis point from the previous month, driven by an increase in long-term interest rates.

07 January 2020 - By Neil Cantle, Claire Booth

This client briefing describes the proposals of the 2021 biennial exploratory scenario.

07 January 2020 - By Lindsy Kotecki, Stan Westrom

This case study discusses the actuarial implications of one potential Medicare buy-in option.

07 January 2020 - By Anna Bunger, Madeleine Cline, Katherine M. Holcomb

This study provides claim cost benchmarks to illustrate the magnitude and distribution of specialty medication costs adjudicated under both the pharmacy and medical benefit for a commercially insured population.

07 January 2020 - By Neil Christy, Stuart Reynolds, William Smith

This report focusses on the Solvency and Financial Condition Reports published in 2019 which refer to year-end 2018.

07 January 2020 - By David Burston, Stuart Reynolds, Philip Simpson, Lyndsay Wrobel

This publication focusses on assessing various shareholder metrics as at year-end 2018, based on publicly disclosed information, that could be used by interested parties - such as investors or market analysts - to form a view on the profitability of a firm’s business.

07 January 2020 - By Ben Mori, Tyler Schulze, Jason A. Clarkson

This paper contains a summary of the key elements of the Medicaid Fiscal Accountability Regulation’s proposed changes to supplemental payments that may be relevant to state Medicaid agencies.

06 January 2020 - By Joseph Boschert, Janet Jennings, Robert L. Schmidt

This paper examines the various connections between health and wealth as well as the repercussions of ignoring those connections.

06 January 2020 - By Joseph Boschert, Janet Jennings, Robert L. Schmidt

People are looking for ways to protect their long-term health and wealth, and they expect their financial advisers to create more comprehensive financial plans that will help them achieve this goal.

06 January 2020 - By Lalit Baveja, Alison Counihan, Tanya Hayward, Monika Lis, Neha Taneja

What are the best practices for designing and implementing a wellness programme?

03 January 2020 - By Mike Gaal, Jason Karcher

How much will single-payer healthcare in the United States cost and how will it be paid?

23 December 2019 - By Rebecca A. Sielman

20 December 2019 - By Paul Sinnott, Michael Daly, Richard W. Holloway, Wing F. Wong, Chihong An, Wen Yee Lee, Stephen H. Conwill, Sanket Kawatkar, Shamit Gupta

This report provides a summary of the mid-year 2019 embedded value results disclosed by Asian insurers.

17 December 2019 - By Jiang Guanjun

In China, the Action Plan for Promoting the High Quality Development of the Healthcare Industry 2019-2022 promotes, in the development of health insurance products, the use of special needs medical services, innovative medical technologies and drugs and high-end medical devices as well as health intervention procedures.

13 December 2019 - By Hyunsu Kim, Michael Leitschkis

This paper considers a technique called the Isolation Forest, which overcomes the shortcomings of classic anomaly detection algorithms.

13 December 2019 - By Mark C. Olleman, Matt Larrabee

This paper presents two alternative options for mortality projection based on historical mortality improvement data.

12 December 2019 - By Sheri Lee Scott

With the peril of California wildfires growing, what's ahead for the insurance industry?

12 December 2019 - By Patrick Meghen, Ellen Matthews

The full slide deck from the Solvency II Compliance Assessment Tool User Seminar on 26th November 2019.

11 December 2019 - By Neil Dissanayake, Peter Lin, Nima Shahroozi

European equity markets had a solid performance in November as optimism grew that a “phase one” trade deal agreement may be reached between the US and China.

11 December 2019 - By Michael C. Meehan

Michael Meehan discusses the current captive marketplace in Cayman.

11 December 2019 - By Joe Becker

The global equity market in November posted its third consecutive monthly return of more than 2% and its ninth positive monthly return for 2019.

10 December 2019 - By Noah Champagne, Dane Hansen

As the prevalence of partnerships between payers and providers increases, it is critical for payers to monitor and track emerging experience and communicate these results to partner providers.

10 December 2019 - By Milliman Employee Benefits Research Group

Monthly benefits news and developments in the United States.

09 December 2019 - By Joseph Sloan , Rik van Beers, Andrew Kay

This briefing note discusses considerations when determining the Fair Value of insurance liabilities.

06 December 2019 - By David Stoddard

The Milliman Multiemployer Health and Welfare Study analyzes various financial disclosures for multiemployer health and welfare plans, also known as Taft-Hartley plans, nationwide.

05 December 2019 - By Joanne Buckle, Tanya Hayward, Natasha Singhal

The value of care categories assess the validity and efficacy of treatments in relation to associated conditions to inform where groups of patients may benefit from alternative pathways.

05 December 2019 - By Charles J. Clark, Zorast Wadia

In November, the funded status of the 100 largest corporate defined benefit pension plans increased by $15 billion as measured by the Milliman 100 Pension Funding Index.

05 December 2019 - By David V. Williams, Donna Wix

What are the prevalence rates for rheumatoid arthritis, ulcerative colitis, and hemophilia as compared to zombie statistics commonly cited?

04 December 2019 - By Julia M. Friedman

What are the advantages of adding a segmented plan to a Medicare Advantage organization portfolio and what are the bid requirements for segmented plans?

03 December 2019 - By Brian Colgan, Halim Gunawan, Richard W. Holloway, David Kong

Developments in the Indonesian life insurance industry during the period 1 July 2019 to 30 September 2019.

03 December 2019 - By David Evans

Offering the right benefits has become even more important for employers trying to attract and retain top talent.

03 December 2019 - By Ram Kelkar, Daren Lockwood, Xiaohong Mo, Adam Schenck

The expected hedge cost for a hypothetical GLWB block (see Index Methodology1) is estimated to be 192 bps as of the end of November 2019, up 1 basis point from the previous month, driven by a slight decrease in long-term interest rates.

02 December 2019 - By Derek Newton, Marc Smillie , Flavien Thery

The analyses underlying this research report focus on the quantitative information contained in the Quantitative Reporting Templates within the Solvency and Financial Condition Reports and draw conclusions about the balance sheets and risk exposures of European non-life insurers.

02 December 2019 - By Eamonn Phelan

In this paper, we look at the central role that can be played by an Expert Judgment Register.

26 November 2019 - By Jason A. Clarkson, Zachary Fohl, Paul R. Houchens

These state profiles summarize insurer financials, marketplace enrollment, and federal assistance provided to households purchasing insurance coverage through the insurance marketplaces, incorporating recently released data from the 2019 open enrollment period and estimated 2019 effectuated enrollment.

26 November 2019 - By Robert W. Beal, Tasha S. Khan

This report presents the results of Milliman’s 2019 Annual Survey of the U.S. Individual Disability Income Insurance Market.

26 November 2019 - By Grant Camp, Ryan Rowland

This alert summarizes key aspects of the proposed Multiemployer Pension Recapitalization and Reform Plan.

25 November 2019 - By Clement Bonnet, Michael Daly, Pingni Eng, Wen Yee Lee

Accelerated growth in Vietnam? Forty senior leaders from different functions of life insurance respond to questions about interest rates, regulatory change, insurtech, and more.

25 November 2019 - By Milliman Employee Benefits Research Group

This card lists the 2020 key limits for employer-sponsored retirement plans, Social Security and Medicare levels, and health savings account limits set by federal agencies.

25 November 2019 - By Sinéad Clarke, Ellen Matthews

To help prepare for Solvency II reporting throughout 2020, we have prepared a briefing note detailing Solvency II reporting deadlines in 2020 and the changes in the reporting framework relative to the previous year.

22 November 2019 - By Eamon Comerford, Cormac Gleeson

This briefing note discusses how the use of external data can complement wider data science initiatives and looks at some of the challenges posed by working with external data.

22 November 2019 - By Noah Llanda

This alert focuses on the Pension Benefit Guaranty Corporation (PBGC) annual report as it pertains to the PBGC Multiemployer Program.

22 November 2019 - By Jeremy Hamilton, Allen J. Schmitz, Ali M Yeager

How does spousal contagion influence long-term care needs?

20 November 2019 - By Milliman Employee Benefits Research Group

The IRS has issued a proposed rule that would amend the life expectancy and distribution period tables used to calculate required minimum distributions (RMDs) from qualified retirement plans, profit-sharing and stock bonus plans, individual retirement accounts (IRAs) and annuities, and 403(b) and 457 plans and certain other tax-favored employer-provided retirement arrangements.

19 November 2019 - By Milliman Employee Benefits Research Group

Key administrative dates and deadlines for calendar-year defined contribution retirement plans subject to ERISA and the Internal Revenue Code.

19 November 2019 - By Milliman Employee Benefits Research Group

Monthly benefits news and developments in the United States.

19 November 2019 - By Heerak Basu, Richard W. Holloway, Philip Jackson, Sanket Kawatkar

In recent years, capital has become more of a constraint for Indian life insurers. This survey of a majority of Indian insurers asks how they're managing risk.

19 November 2019 - By Bryan Jones

By tweaking existing familiar concepts—the funding liabilities—we can leverage the understanding that employers already have about their pension plans to explain various risks, some of which are very pertinent to decision making.

19 November 2019 - By Heerak Basu, Shamit Gupta, Richard W. Holloway

The (re)insurance industry in Asia has recently seen signs of increased actuarial outsourcing. Is it a new trend?

19 November 2019 - By Neil Dissanayake, Peter Lin, Nima Shahroozi

European equity markets had a mixed performance in October.

18 November 2019 - By Mark R. Shapland

Under Solvency II, non-life reserving risk takes on a meaning based on the change in the estimated ultimate loss over a one-year time horizon, which accounts for the payments during the one-year time horizon and the consequences for future payments after the one-year time horizon.

18 November 2019 - By Milliman Employee Benefits Research Group

Key administrative dates and deadlines for calendar-year single-employer defined benefit plans subject to ERISA and the Internal Revenue Code.

18 November 2019 - By Heerak Basu, Shamit Gupta, Richard W. Holloway

Milliman conducted a survey to assess trends in life insurance actuarial outsourcing.

15 November 2019 - By Lalit Baveja, Carol Bazell, Alison Counihan

The successful adoption of value-based care in the Middle East faces important challenges.

15 November 2019 - By Mark R. Shapland

Under Solvency II, reserving risk takes on a different meaning, based on the change in the estimated ultimate loss over a one-year time horizon, which accounts for the payments during the one-year time horizon and the consequences for future payments (i.e., the change in reserves) after the one-year time horizon.

15 November 2019 - By Mark R. Shapland

This paper focuses on the closed form model developed by Mack, modified by Merz and Wüthrich to address the one-year horizon under Solvency II, and on its extension for two-year, three-year, etc. time windows that can be reconciled back to the original Mack formulas.

15 November 2019 - By Milliman Employee Benefits Research Group

The Department of Health and Human Services' Centers for Medicare and Medicaid Services (CMS) has announced cost-of-living adjustments (COLAs) for Medicare Parts A and B for 2020.

14 November 2019 - By Gillian Tucker

This briefing note provides an introduction to data visualisation.

13 November 2019 - By Milliman Employee Benefits Research Group

The Department of Labor (DOL) released a proposed rule that, if finalized, will provide an additional "safe harbor" for plan administrators to use electronic media to furnish retirement plan information to participants and beneficiaries.

13 November 2019 - By François Dauphin, William C. Hines, Daniel D. Skwire

This paper illustrates the potential impacts of Accounting Standards Updates 2018-12, Targeted Improvements for Long-Duration Contracts, relative to current US GAAP accounting with respect to products with long claim periods such as individual disability insurance and highlights some practical implementation challenges.

12 November 2019 - By Mike Claffey, Rob Frize, Patrick Meghen

This briefing discusses Irish SFCRs in 2017 and 2018 and ORSA processes and outcomes.

11 November 2019 - By Aisling Barrett, Eoin King

This briefing note summarises EIOPA’s October 2019 consultation paper on its opinion on the Solvency II 2020 review.

11 November 2019 - By Joe Becker

The global equity market in October notched its second consecutive monthly return of more than 2% and its eighth positive monthly return for 2019.

11 November 2019 - By Eamon Comerford, Cormac Gleeson, Eoin King, Kevin Manning, Daniel McAleese, Matthew McIlvanna

The potential role of pooled investment funds in helping alleviate Ireland’s affordable housing crisis.

11 November 2019 - By Charles J. Clark, Zorast Wadia

In October, the funded status of the 100 largest corporate defined benefit pension plans increased by $11 billion as measured by the Milliman 100 Pension Funding Index.

08 November 2019 - By Jeremy Cunningham, Mat DeLillo

This paper discusses the risks and considerations of changing Medicaid’s funding formula to a general block grant structure.

08 November 2019 - By Milliman Employee Benefits Research Group

The 2020 adjusted figures for high-deductible health plans and health savings accounts included in this Client Action Bulletin were released by the IRS earlier this year and are provided here for convenience.

06 November 2019 - By Milliman Employee Benefits Research Group

By year-end 2019, sponsors of calendar-year single-employer retirement plans must adopt necessary and discretionary plan amendments to ensure compliance with the statutory and regulatory requirements of ERISA and the tax code. This Client Action Bulletin looks at key areas - including administrative compliance issues - that defined benefit (DB) and/or defined contribution (DC) plan sponsors should address by Dec. 31, 2019.

06 November 2019 - By Milliman Employee Benefits Research Group

Key administrative dates and deadlines for defined benefit plans subject to ERISA and the Internal Revenue Code.

04 November 2019 - By Eric Buzby, Catherine M. Murphy-Barron

In the past two years, CMS has expanded the types and flexibility of supplemental benefits Medicare Advantage organizations (MAOs) can offer enrollees. This issue brief discusses the implications of actions taken by plans in response.

04 November 2019 - By Dominick Pizzano

This article highlights points to consider when conducting a Section 409A “to be or not to be” determination process.

01 November 2019 - By Jacob Bryniarski, Joanne E. Fontana

This article, using publicly available CMS data, explores the current landscape of dental benefits offered in Medicare Advantage plans, discussing the ramifications for insurers and consumers alike.

01 November 2019 - By Ram Kelkar, Daren Lockwood, Xiaohong Mo, Adam Schenck

The expected hedge cost for a hypothetical GLWB block (see Index Methodology1) is estimated to be 191 bps as of the end of October 2019, down 10 basis points from the previous month, driven by an increase in long-term interest rates.

01 November 2019 - By Dustin J. Grzeskowiak, Darin Muse, Daniel J. Perlman

There may be some uncertainty for plans and consumers alike around the Quality Information Rating Bulletin—specifically, what the quality scores represent, how they are developed, and/or how they may be used now or in the future.

29 October 2019 - By Dan Freeman, Mike Gaal, Cory Gusland, Jennifer Janvrin

Health and group benefits news and developments in the United States.

28 October 2019 - By David D. Evans, Cody Webb, Eric J Xu

Wildfire risk has become a key focus of California property insurers.

25 October 2019 - By Josh Dobiac, Ram Kelkar, Jeanne Russo , David Schreiner

Major initiatives are under way to reform interest rate benchmarks and move away from Interbank Offered Rates (IBOR) to overnight near risk-free rates.

24 October 2019 - By Jason Karcher, Jason Petroske, Cameron Gleed

This article breaks down the purpose and technical details of the Patient Protection and Affordable Care Act risk adjustment data validation audit.

24 October 2019 - By Claire Booth, Tanya Hayward, Peter Moore, Thomas Peplow

This paper discusses the areas which should be assessed before, during and after embarking on an outsourcing agreement with a cloud provider.

24 October 2019 - By Sean S. Hilton, Thomas D. Murawski

Insurers who forgo periodic, comprehensive analyses to ensure the appropriateness of their dental rating manuals risk reduced product marketability (if rates are too high) or non-profitability and adverse selection (if rates are too low).

22 October 2019 - By Thomas Bulpitt, Andrew Kay, Henny Verheugen

This note summarises some of the key points and remaining issues raised during the consultation period for the Exposure Draft, particularly those raised by the European Financial Reporting Advisory Group and the European Insurance CFO Forum.

18 October 2019 - By Benjamin J. Diederich, William J. Fox, Brent Jensen

Employers should adjust health plan options for morbidity in order to reduce the selection bias.

17 October 2019 - By Rex Barker, Kevin M. Campe, Timothy L. Connor, Stuart Kliternick, Nina M. Lantz, Ladd E. Preppernau, Joel E. Stewart

The Fall 2019 Multiemployer Pension Funding Study updates the estimated funded status of U.S. multiemployer plans as of June 30, 2019, showing the change in funding levels from December 31, 2018.

17 October 2019 - By Neil Dissanayake, Peter Lin

European equity markets made a strong recovery in September as the ECB cut the benchmark rate by 10 basis points and restarted its asset purchase programme in response to a weaker economic outlook.

17 October 2019 - By Joanne Buckle, Alison Counihan, Tanya Hayward, Nicholas Kallis, Bridget MacDonnell, Kevin Manning, Neha Taneja

This guide can assist managers in thinking through the practical components of a population health management programme, from overall objectives and definitions, through to the people, processes and technology enablers that are so critical for success.

15 October 2019 - By Joe Becker

Global equities rallied in September, recovering all of their losses from August and notching their third consecutive quarter of positive returns.

15 October 2019 - By Michelle Klein, Matt Kranovich

This paper highlights several key changes to Medicare Plan Finder— and potential unintended consequences— and offers suggestions as to how those changes could potentially affect Medicare Advantage Organizations.

14 October 2019 - By Joanne E. Fontana

New trends in dental care and insurance coverage are aimed at improving the patient experience as Milliman’s Joanne Fontana discusses.

10 October 2019 - By Demosthenis Demosthenous, Edward Morgan

The Greek insurance market contracted every year between 2009 and 2016, and even with improvement in the last couple of years, is still nearly 30% below the peak level reached in 2009.

10 October 2019 - By Ankush Aggarwal, Joanne Buckle, Tanya Hayward

This report provides an updated view of National Health Service England prescription drug costs for financial year 2018/2019.

10 October 2019 - By Claire Booth, Emma Hutchinson

This paper discusses the key findings of the European Insurance and Occupational Pensions Authority’s report titled ‘Cyber Risk for Insurers- Challenges and Opportunities’ with respect to cyber risk as an element of an insurer’s own operational risk profile.

09 October 2019

Markets were mixed for the quarter as investors digested potential risks and opportunities in the market.

09 October 2019 - By Milliman Employee Benefits Research Group

Monthly benefits news and developments in the United States.

08 October 2019 - By Patrika Bansal, Heerak Basu

This briefing note analyses the evolution of the discount rate for measuring employee benefit obligations under AS15(R), AS19 and IAS19.

08 October 2019 - By Stoddard Davenport, Stephen P. Melek

Milliman has been retained by a number of state agencies to advise them on appropriate methods by which to conduct parity compliance analyses and audits for nonquantitative treatment limitations.

07 October 2019 - By Charles J. Clark, Zorast Wadia

In September, the funded status of the 100 largest corporate defined benefit pension plans rose by $38 billion as measured by the Milliman 100 Pension Funding Index.

04 October 2019 - By Arthur Rains-McNally, William Strange

This article presents perspectives on the challenges of the current interest rate environment.

03 October 2019 - By Ram Kelkar, Daren Lockwood, Xiaohong Mo, Adam Schenck

The expected hedge cost for a hypothetical GLWB block (see Index Methodology1) is estimated to be 201 bps as of the end of September 2019, down 10 basis points from the previous month, driven by an increase in long-term interest rates.

02 October 2019

EIOPA published its first wave of consultation papers on the Solvency II 2020 review in June 2019. This briefing note summarises EIOPA’s proposals regarding Insurance Guarantee Schemes.

02 October 2019 - By Derek Newton, Marc Smillie , Flavien Thery

This report summarises the third set of Solvency II public reports, the Solvency and Financial Condition Reports, as they relate to non-life insurers in the UK or Gibraltar.

02 October 2019 - By Jean-Baptiste Coulomb, Adeline Maulet, Eliott Pradat , Badis Zeghmar

EIOPA published its first wave of consultation papers on the Solvency II 2020 review in June 2019. This briefing note summarises EIOPA’s proposals regarding Financial Stability Reporting.

02 October 2019 - By David Burston, Neil Christy, Jessica Crowson, Stuart Reynolds

EIOPA published its first wave of consultation papers on the Solvency II 2020 review in June 2019. This briefing note summarises EIOPA’s proposals regarding the Solvency and Financial Condition Report (SFCR).

02 October 2019 - By Divey Hiranandani, Eoin King, Ellen Matthews

EIOPA published its first wave of consultation papers on the Solvency II 2020 review in June 2019. This briefing note summarises EIOPA’s proposals regarding the Quantitative Reporting Templates.

02 October 2019 - By Jean-Baptiste Coulomb, Adeline Maulet, Eliott Pradat , Badis Zeghmar

EIOPA published its first wave of consultation papers on the Solvency II 2020 review in June 2019. This briefing note summarises EIOPA’s proposals regarding general issues on supervisory reporting and public disclosure.

01 October 2019 - By Thomas Poinsignon

The recent increase in the amount of data generated, stored and analysed by insurers to establish their pricing and underwriting policies has led to the emergence of new needs both from a regulatory point of view, with the recent implementation of the European framework of the General Data Protection Regulation and with a view to offering new services on the market (cyber risk).

01 October 2019 - By Utku Cagatay Arslan, Ayse Pinar Coban, Halil Kolbasi, William Smith , Jennifer Strickland

This report focuses on the preparedness of Turkish insurers and reinsurers for the new accounting standard, International Financial Reporting Standard 17.

30 September 2019 - By Eoin O'Baoighill, Eamonn Phelan

This briefing note discusses some of the tools and techniques that can be used to validate and understand black box models.

24 September 2019

The Segal Blend method of determining withdrawal liabilities in multiemployer pension plans was ruled improper in a recent case with the New York Times but it has been upheld in others, leaving the issue open for future challenges.

23 September 2019 - By Rachin Aggarwal, Abhishek Agrawal

This article examines how the concept of a standard health product would benefit various stakeholders in India.

23 September 2019 - By David D. Evans, Nancy P. Watkins

This article provides an overview of the trends in the U.S. private flood market.

20 September 2019 - By Anne C. Kallfisch, Dana S. Ryan

Insurtech presents unique opportunities for new and established insurers in the title space to innovate and gain market share.

18 September 2019 - By Heerak Basu, Richard W. Holloway, Philip Jackson, Sanket Kawatkar

This e-Alert provides background on the emerging Bangladeshi life insurance market.

17 September 2019 - By Aisling Barrett, Eamon Comerford, Joseph Sloan

A breakfast briefing on investment strategies under Solvency II.

16 September 2019 - By Mike Hamachek, Christopher Kunkel

What happened in the first year of Merit-Based Incentive Payment System reporting?

16 September 2019 - By Molly Barth, John W. Rollins

The visibility of climate’s impact on property hazard is increasingly leading individuals and their chosen leaders to ask: how might an increase in hazard affect the desirability of living in various communities, and how do we manage the socioeconomic impacts?

13 September 2019 - By Chihong An, Stephen H. Conwill, Michael Daly, Richard W. Holloway, Wen Yee Lee, Paul Sinnott, Wing F. Wong

The Milliman 2018 Embedded Value Results: Asia report provides in-depth analysis of the embedded value methodologies and assumptions adopted as well as the impact of key regulations and other market developments in the region.

12 September 2019 - By Patrick Meghen

With the recent increase in regulatory focus on outsourcing, (re)insurers need to ensure that their system of governance, risk management and monitoring of outsourcing arrangements all satisfy the expectations of the regulator.

11 September 2019 - By Carol Bazell, Dane Hansen, Pamela M. Pelizzari, Bruce S. Pyenson

This report discusses the economic and clinical burden of new osteoporotic fractures that occurred in 2015 in the Medicare fee-for-service population using information from a large administrative medical claims database.

10 September 2019 - By Joe Becker

Global equities notched their worst month of the summer amidst heightened volatility.

09 September 2019 - By Chihong An, Stephen H. Conwill, Michael Daly, Richard W. Holloway, Wen Yee Lee, Paul Sinnott, Wing F. Wong

This report compares and contrasts the various different approaches taken to embedded value reporting across Asian markets and insurers.

09 September 2019 - By Joanne Buckle, Tanya Hayward

This paper outlines some of the key considerations associated with using real-world data to widen the evidence base used in economic evaluations.

06 September 2019 - By Charles J. Clark, Zorast Wadia

In August, the funded status deficit of the 100 largest corporate defined benefit pension plans increased by $87 billion as measured by the Milliman 100 Pension Funding Index.

05 September 2019 - By Ram Kelkar, Daren Lockwood, Xiaohong Mo, Adam Schenck

The expected hedge cost for a hypothetical GLWB block (see Index Methodology1) is estimated to be 211 bps as of the end of August 2019, up 38 basis points from the previous month, driven by a decrease in long-term interest rates.

03 September 2019 - By Joe Becker

Market observers have posited in recent years that Volatility Control funds represent a focal point of instability for financial markets.

30 August 2019 - By Rachel Soich

Due to the growing instability of directors and officers coverage, insurers have their eyes on three rising risks: increased securities action lawsuits, heightened awareness to social issues, and growing cyber risks and data protection laws.

29 August 2019 - By Clement Bonnet, Scott Chow, Michael Daly, Janice Wang

The Milliman Fulfillment Ratio Index covers Hong Kong life insurance companies representing a significant market share as measured by in-force premiums.

23 August 2019 - By Dana-Marie Dick, Natasha Singhal

This paper considers the current and developing regulation, in the UK and Europe, surrounding climate change-related risks, the risk identification and risk management practices available to insurers and examples of the key challenges faced by insurers in response to climate change.

23 August 2019 - By Neil Dissanayake, Peter Lin

Equity markets had a modest performance in July as the US Federal Reserve lowered interest rates by 25 points for the first time in 11 years.

23 August 2019 - By Raji Bhagavatula, Mark Goldburd, Manyi Luo , Jason L. Russ

The U.S. property and casualty insurance industry as a whole has experienced significant deterioration in loss ratios for general liability in calendar years 2015 to 2018.

22 August 2019 - By Clement Bonnet, Scott Chow, Michael Daly, Paul Sinnott

This e-Alert gives an overview of the latest Quantitative Impact Study (QIS) 3 specifications and highlights some of the key differences with QIS 2.

22 August 2019 - By Cory Gusland, Daniel Henry, Raheel Sohail

This paper explores key model features of the Center for Medicare and Medicaid Innovation’s Primary Care First, a new voluntary payment model focused on primary care.

21 August 2019 - By Chris Beck, Chris Harner

There is a significant need in the market to transform cyber assessments, information technology metrics, and information security into the common language of risk management.

20 August 2019 - By Rachin Aggarwal, Joanne Buckle, Vidhi Gupta, Neha Taneja

This paper looks at the key provisions of the Mental Healthcare Act, 2017, mental illness prevalence, supply-side indicators and the current treatment gap.

20 August 2019 - By Robert Eaton

Combination products provide valuable, and often substantial, health insurance coverage in the framework of a life insurance or annuity policy.

19 August 2019 - By Brian Colgan, Halim Gunawan, Richard W. Holloway, David Kong

Developments in the Indonesian life insurance industry during the period 1 April 2019 to 30 June 2019

01 August 2019 - By Tim F. Kempen, Allen J. Schmitz

This report presents the results of our sixth triennial long-term care insurance valuation survey.

26 July 2019 - By Charlie Howell, Michael Leitschkis, Russell Ward

This paper introduces ESG Rebase, a technology capable of accurately translating a baseline risk-neutral Economic Scenario Generator file representing an entirely different set of market conditions, such as nominal yield curve, equity volatility vector or fixed interest volatility surface.

25 July 2019 - By Aaron C. Koch

An interview with Aaron Koch about the current state of affairs in the insurance-linked securities market and how captives are using this segment.

24 July 2019 - By Sinéad Clarke

This briefing note looks at the Year End 2018 Solvency and Financial Condition Reports (SFCRs) of a sample of life insurers based in Ireland and includes analysis of key information included in the Quantitative Reporting Templates published with the SFCRs.

23 July 2019 - By Patrick Meghen

The amendments to the Solvency II Delegated Regulations resulting from the 2018 interim review have now been published in the Official Journal of the EU.

23 July 2019 - By Van Beach

Understanding the business versus the operational skills and activities related to modeling holds the key to the new actuarial operating model.

22 July 2019 - By Heerak Basu, Richard W. Holloway, Philip Jackson, Sanket Kawatkar

This e-Alert highlights the key changes in regulations regarding non-linked and linked insurance products from 2013 to 2019 and discusses the business implications for insurers.

16 July 2019

How will rain and lingering flooding in the Midwest farm belt affect farmers’ choice of planting and insurers’ crop insurance losses?

11 July 2019 - By Brian N. Anderson, Greg Callahan, Michael DiPrima

This article describes the origin of pharmacy benefit managers (PBMs), how claims are processed, and ways in which blockchain could disrupt the PBM marketplace.

09 July 2019 - By Clement Bonnet, Brian Colgan, Michael Daly, Sharon Huang, Farzana Ismail, Philip Jackson, Wen Yee Lee, Atsushi Okawa, Wing F. Wong

This report covers the capital regimes in 10 markets in Asia plus the 2018 International Capital Standard field test.

08 July 2019 - By Matthew McIlvanna, Eoin O'Baoighill, Eamonn Phelan

This briefing note summarises EIOPA’s recent report on its thematic review of the uses of big data analytics in motor and health insurance.

08 July 2019 - By Ankush Aggarwal, Joanne Buckle, Pravin Harodia

What are the current and potential uses of generalised linear modelling in the Indian health market?

03 July 2019 - By Claire Booth, Paul Fulcher, Fred Vosvenieks, Russell Ward

This paper provides some context for a discussion of insurer liquidity risk, exploring sources of that risk and providing some examples of where it has challenged insurers in the past.

19 March 2019 - By Joy A. Schwartzman

As corporate officers reevaluate their current directors and officers coverage, it is important to thoroughly understand the type of coverage purchased and to quantify a board’s potential risk or “claim severity.”

18 September 2018 - By Robert W. Beal, Tasha S. Khan

This report presents the results of Milliman’s 2018 Annual Survey of the U.S. Individual Disability Income Insurance Market.

01 March 2017 - By Jeffery T. Dukes

Discounted accelerated benefits, where the accelerated benefit paid is a present value of expected claims less a present value of future premiums, are often believed to be cost neutral.

11 June 2012 - By Aldo Balestreri, Luca Cavaliere, Christophe Vallet, Takanori Hoshino, Takahiro Kinoshita

This report introduces modeling practices currently observed in France, Italy, and Japan in order to illustrate various issues that many companies are facing when modeling policyholder dividends under a market-consistent framework.

26 May 2007 - By Wayne E. Blackburn, Derek A. Jones, Joy A. Schwartzman

This paper explores the concepts underlying the valuation of an insurance company in the context of how other (noninsurance) companies are valued.

14 December 2006 - By Gary Finkelstein, Takanori Hoshino, Rikiya Ino, Edward Morgan

This report endeavors to answer questions as well as to look at a few illustrative cases of how economic capital can be practically applied. The report will help decision-makers formulate an approach to economic capital that will align with their larger corporate strategies.

- By Michael Taggart, Don Biron

This 2020 market overview highlights some of the changes affecting the health and group benefit administration market that employers need to understand to take advantage of improvements and avoid issues in managing their administration providers.

- By Takanori Hoshino, William C. Hines

This briefing note illustrates potential differences between the International Financial Reporting Standard for insurance contracts and US GAAP long-duration contract targeted improvements using a traditional level premium endowment contract.

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