Risk Management
Task Force

Health Risk Management (HRM) Minutes


Health Risk Management (HRM) Subgroup
Solvency Grouplet
April 5, 2003
2:00 p.m. Central Time

Trevor Pollitt (Leader), Tim Adams, Rowen Bell, Kara Clark, Randy Edwards, John Stark

Despite the unfocused agenda, significant discussion occurred and led to floating a proposed RFP past the Committee on Health Benefit Systems Research.

Representation on the AAA RBC trend group
We discussed the current status of the above group, and believe that its focus will be more on P&C concerns than on A&H. But to the extent that A&H is perceived as similar to P&C, A&H companies might be affected by the group's deliberations. We will not assign a member to that AAA group, but will watch what they do, in case we feel a need to step up later.

Our mission
Being actuaries, we closely examined the loose solvency definition in the agenda, and with various minor tweaks, found it workable. Specifically, we consider our purpose to be

  • defining threats to the solvency of A&H insurers, especially by comparing those with and contrasting them to threats to Life insurers' solvency;
  • extracting the solvency-specific items from the risk mapping done by the Specialty Guide grouplet, in conjunction with the above endeavor.

While RBC is one aspect of the quantification we seek, it is not the primary focus of the group. To the extent that Life RBC factors are inappropriately applied to A&H business, they fall under the first bullet above.

Our project
We considered but deferred developing an RFP on the effectiveness of current metrics to predict future viability of A&H enterprises. Due to overwhelming Medical representation in the group, we chose to first define an RFP about quantifying the specific risks of healthcare provider networks. Kara developed this immediately after our call, and after 2 days of comments, submitted it for consideration. Kara is currently working on additional funding sources.

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