Reporting is an increasing burden for all plans. Self funded plans have obligations for producing IBNR estimates for finance, COBRA rates for employee notices, trusts, VEBA’s, government plans and others need calculations created, or at a minimum endorsed by a member of the American Academy of Actuaries.
“Statement 45 was issued to provide more complete, reliable, and decision-useful financial reporting regarding the costs and financial obligations that governments incur when they provide postemployment benefits other than pensions (OPEB) as part of the compensation for services rendered by their employees. Postemployment healthcare benefits, the most common form of OPEB, are a very significant financial commitment for many governments.” (GASB)
IBNR – “Incurred but not reported.” reflects the total
amount owed by the insurer (self funded plan) to all valid claimants who have had a covered loss but have not yet reported it. Since the insurer (or employer) knows neither how many of these losses (the frequency) have occurred, nor the severity of each loss, IBNR is necessarily an estimate. The quality of this estimation is often used as a tool in assessing financials.
Our actuaries establish and evaluate unpaid loss reserves using recognized standard actuarial loss development methods and techniques.
