Ongoing Core Services
Summary of Services
- Wakely Renewal Report
- Plan Design Analysis
- Incurred But Not Reported Reserve Report
- Five Year Cost Projection
- Stop-Loss Analysis
- Financial Monitoring Report Peer Review
- Wakely Research Reports & Newsletters
Wakely Renewal Report
The Wakely Renewal Analysis uses a three step process to help employers feel confident and knowledgeable about their next renewal. Our three step process addresses the key concepts that employers are concerned about at the time of renewal:
- Current Status (Where are we now?) Wakely projects claims to the end of the current policy year and provides a comparison to current budgeted claims and budgeted premium (or premium equivalent).
- Projected Status (Where are we going?) Wakely develops a projections for the next policy year based on emerging experience and incorporates results of various analysis like trend, credibility, IBNR estimates, expense changes, tier relativity impact, and others. Wakely also provides a thorough analysis of the carrier’s renewal report and scrutinizes all assumptions included in the carrier’s renewal development.
- Future Status (Where do we want to go?) Wakely creates scenarios covering situations like plan migration, benefit design changes, contribution changes, network platform enhancements, and others to assist the employer in making sound strategic decisions.
The Wakely Renewal Report is an easy to understand package incorporating our three key viewpoints of the renewal projection which allows employers to quickly identify the important pieces of the renewal while at the same time providing in-depth analysis. Included in the Renewal Report are mini-reports focusing on key components including trend and seasonality, stop loss coverage options, plan design changes, administrative fees and employer contributions. Typically, Wakely creates an initial Renewal Report based on emerging experience and then updates it after receiving updated carrier information and the carrier renewal. Additionally, the Renewal Report includes a review of carrier assumptions including IBNR levels, trend, plan design changes, and large claims adjustments.
Plan Design Analysis
Wakely’s Plan Design Analysis evaluates all potential plan design changes as well as confirms that the current actuarial relative values are appropriate. Our unique decrement approach clearly lays out plan change impacts and the symbiotic relationships that may exist in an easy to understand report which will allow employers to make adjustments to their plans and fully understand the impact. Critical to our Plan Design Analysis is the Wakely-customized Federal Actuarial Value Calculator, which represents an empirical estimate of the actuarial value calculated in a manner that provides a close approximation to the actual average spending by a wide range of consumers in a standard population. The Federal Actuarial Value Calculator has an underlying membership basis of over 6 million members and with the Wakely customization wrapped around the core calculator we are able to accurately value benefit design changes.
Incurred But Not Reported Reserve Report (IBNR)
The Wakely IBNR Reserve model uses proven actuarial methods to estimate the portion of claims that are incurred but not yet paid. Our IBNR Reserve Model sensitivity tests assumptions to understand the key results drivers for each employer. Our easy to understand IBNR Reserve Report provides both summary and detailed IBNR results and restatements of prior period IBNR estimates. We can provide reports monthly, quarterly or annually and have substantial experience presenting results to auditors. Our approach and communication complies with all Actuarial Standards of Practice (ASOPs).
Five Year Cost Projection Report
The Wakely Cost Projection model leverages the work completed and available in the Wakely Renewal Report. We sensitivity test the employer’s future risk potential based on key assumptions such as trend, enrollment shifts and plan migration. Our Five Year Cost Projection Report is a complete, easy to understand analysis designed to provide information that is critical to managing risk.
Stop Loss Report
For groups that are not fully insured, the Wakely Stop Loss Analysis uses detailed, member level Monte Carlo simulation to assess the risk of different stop loss coverage levels. Our Stop Loss Analysis Report provides an easy to read and understand summary of the various coverage options as well as a graphical display of the result of the Monte Carlo simulation results for each employer. The Stop Loss Report is typically included in the Renewal Report but it can be done on a stand-alone basis.
Financial Monitoring Report Peer Review
Wakely’s Senior Consultants provide an in-depth review of the Financial Monitoring Report (FMR) prepared by the employer (or other third party). This ensures that the claims experience, expenses and all assumptions used in the FMR are actuarially sound and consistent with the Renewal Projection, Renewal Evaluation, 5 Year Cost Projection and IBNR. In addition, our senior consultants will ensure that all information is being interpreted and used correctly by the employer.