Underwriting Review for Expatriate Medical and Dental Plan Lead to Cost Savings
The International Benefits team began by requesting and reviewing more in-depth information on the historical claim experience of the customer’s expats. This process identified several larger individual claims and recent but uncommon claim patterns that were not likely to repeat going forward. As a result, the team agreed with the carrier that the projected per member claims for the upcoming year was significantly less than the standard underwriting methodology previously suggested.
Next, the International Benefits team reviewed the underwriting factors beyond claims that go into a renewal rate calculation – trend, IBNR, network savings fees, retention, stop loss and local market partner fees/charges. These costs are often based on standard or historical levels that may not be appropriate for the customer’s situation or the current expat insurance market. Our International Benefits team’s understanding of expatriate medical and dental pricing allowed them to negotiate a set of customized factors for the customer based on its specific circumstances that helped reduce the plan’s ongoing expense basis.
Due to the team’s thorough analysis and expatriate medical/dental underwriting knowledge, adjustments were made in both projected claims and the plan’s total required expenses. This led to the customer realizing a reduction in its renewal rates versus having increased costs at the current renewal. In addition, the customer is better positioned for future renewals.
Overview of results:
- 5% renewal increase became a -7.5% reduction in renewal rates
- Premium savings of several hundred thousand dollars
- Methodology for projecting claims at future renewals was reset
- Expense factors to be used in future renewal calculations were reduced
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