Category Archives: Issuers

Tax reform considerations for group life and disability insurers

How will tax reform in the United States affect the profitability of disability income and group life insurance? To offer some perspective, Milliman consultant Jennifer Fleck performed an analysis measuring the effect that the Tax Cuts and Jobs Act could have on the following products:

• Individual disability income
• Group long-term disability income
• Group short-term disability income
• Group life insurance with waiver of premium

The analysis considered three key changes in the tax law affecting life insurers as well as a fourth change, which remains an open issue. The analysis was done with industry average assumptions on profitable plan designs. Read Jennifer’s article “Tax reform: Disability income and group life” to learn more.

Brief study of UK health insurers’ first SFCRs

Solvency and Financial Condition Reports 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.

Managing ACA risk adjustment

Many issuers participating in the Patient Protection and Affordable Care Act (ACA) have not put in sufficient effort to create a deliberate, comprehensive risk adjustment strategy. That could lead to lost opportunities and less certain financial outcomes.

The most successful risk adjustment management programs tend to be planned, firm-wide initiatives that recognize and account for the dollars at stake, the degree of government scrutiny, and the amount of people, processes, and technology involved.

In this paper, the first in a four-part series, Brandy Millen and Jason Petroske introduce risk adjustment management and discuss actions that can be taken to maintain its long-term success.