Category Archives: Insurance

Investigating inclusive insurance demand in Ethiopia

One important barrier to insurance markets that are more inclusive is the necessity to better understand the needs of low-income and other un-served and underserved populations. This study provides data and information regarding critical inputs to key microinsurance product development opportunities and requirements in Ethiopia. By examining the risks that low-income people face, how they manage them, and identifying gaps, the market can gain valuable inputs into product design, including benefits to offer, better distribution approaches, and marketing and communications strategies.

The authors of the study are MicroInsurance Centre’s Katie Biese and Michael J. McCord, World Bank Group’s Craig Thorburn, EA Consultants’ Katherine Baez (EA Consultants), and Eamon Kelly.

Brief study of UK health insurers’ first SFCRs

Solvency and Financial Condition Reports (SFCRs) contain a number of Quantitative Reporting Templates (QRTs). They are an important source of information on a company’s financial position under Solvency II. This report by Milliman’s Joanne Buckle and Didier Serre compares and contrasts the information in selected QRTs of 13 health insurers in the United Kingdom.

A quantum leap in benchmarking P&C unpaid claims

The ability to benchmark an entity’s results against others in the industry and the industry as a whole can provide significant insights into both actuaries’ daily work and their strategic planning. Using the most advanced benchmarks available can help to ensure a more efficient integration of reserve variability analysis into enterprise risk management processes and enhance an entity’s strategies. Milliman consultant Mark Shapland offers some perspective in this article.

The article was originally published in the March/April 2018 issue of Contingencies.

Uninsured subcontractors can increase insurance costs

Subcontractors benefit companies in various industries like utility and construction with specialized knowledge to ensure product quality at a lower cost. However, these companies need to consider the additional liability risks associated with a subcontractor’s work and safety. Careless subcontractors that do not obtain proper insurance coverage can increase a company’s liability and negatively affect its financial results.

What types of insurance coverage does a subcontractor need? What happens when a subcontractor is uninsured without a company’s knowledge? Milliman’s Rachel Soich provides the answers in her article “Subcontractors: How a common business practice could lead to a mountain of insurance costs.”

U.S. tax reform considerations for captive insurers

How will tax reform in the United States affect captive insurers? A.M. Best recently interviewed Milliman’s Joel Chansky on the topic during the 2018 Captive Insurance Companies Association (CICA) International Conference. He discusses several business implications that captives and other insurers must consider related to tax reform.

Milliman’s gradient A.I. platform brings first A.I. predictive analytics solution to professional employer organization (PEO) market

Milliman has announced that gradient A.I., a Milliman predictive analytics platform, now offers a professional employer organization (PEO)-specific solution for managing workers’ compensation risk. gradient A.I. is an advanced analytics and A.I. platform that uncovers hidden patterns in big data to deliver a daily decision support system (DSS) for insurers, self-insurers, and PEOs. It’s the first solution of its kind to be applied to PEO underwriting and claims management.

“Obtaining workers’ compensation insurance capacity has been historically difficult because of the lack of credible data to understand a PEO’s expected loss outcomes. Additionally, there were no formal pricing tools specific to the PEO community for use with any level of credibility—until gradient A.I. Pricing within a loss-sensitive environment can now be done with the science of Milliman combined with the instinct and intuition of the PEO,” says Paul Hughes, CEO of Libertate/RiskMD, an insurance agency/data analytics firm that specializes in providing coverage and consulting services to PEOs. “Within a policy term we can understand things like claims frequency and profitability, and we can get very good real-time month-to-month directional insight, in terms of here’s what you should have expected, here’s what happened, and as a result did we win or lose?”

gradient A.I., a transformational insurtech solution, aggregates client data from multiple sources, deposits it into a data warehouse, and normalizes the data in comprehensive data silos. “The uniqueness for PEOs and their service providers—and the power of gradient A.I.—emerges from the application of machine-learning capabilities on the PEOs’ data normalization,” says Stan Smith, a predictive analytics consultant and Milliman’s gradient A.I. practice leader. “With the gradient A.I. data warehouse, companies can reduce time, costs, and resources.”

For more on how gradient A.I. and Libertate brought predictive analytics solutions to PEOs, click here.