Reserving Long Term Medical Claims

Snader, Richard H.

Refereed Paper/Article
Proceedings of the Casualty Actuarial Society Casualty Actuarial Society - Arlington, Virginia
1987: LXXIV
322
http://www.casact.org/pubs/proceed/proceed87/87322.pdf

Abstract

In this paper, the use of life contingencies to establish reserves for claimants requiring lifetime medical care is explored. In evaluating such claims, consideration should be given to the effects of inflation, discounting for interest, life expectancy, the impact of the claimant's medical condition on life expectancy, and the accurate measurement of medical costs. The evaluation is made in three phases: a claims evaluation, a medical evaluation, and an actuarial evaluation. The claim evaluation consists of gathering accurate information about the claimant's medical condition and the current cost of providing medical care. The medical evaluation consists of using the medicate information obtained from the claim evaluation to estimate the effect on the claimant's life span. Information obtained from the claim and medical evaluations is combined with assumptions regarding interest, inflation, and mortality to produce the actuarial evaluation.

Prizes: Dorweiler Prize 1988

Taxonomy Classifications

• Actuarial Applications and Methodologies > Reserving > Claims Handling
• Actuarial Applications and Methodologies > Reserving > Discounting of Reserves
• Business Areas > Professional Liability > Medical Malpractice - Claims-Made
• Business Areas > Professional Liability > Medical Malpractice -Occurence
• Actuarial Applications and Methodologies > Reserving > Reserving Methods
• Business Areas > Workers Compensation

Printer-Friendly Page

Return to Browse CAS Taxonomy | Advanced Search