Albion College
Mathematics and Computer Science
The Foundation of Catastrophic Insurance Pricing
Kyle Albrecht, '15

Senior Mathematics Major

Albion College

There are many different types of insurance plans, but larger companies sometimes opt to be self-funded. A self-funded insurance plan is any plan where the company itself pays out for claims instead of a designated insurance company. However, since an individual could have a huge claim (upwards of a million dollars), it is a good idea to limit potential losses. A self-funded company can elect to have stop-loss coverage, which will cover larger than usual claim amounts. There are a few different ways that insurance companies cover insurance plans, and my talk will focus on the different aspects of each. Specific stop-loss coverage looks at each individual and pays for a portion of claims above a pre-determined amount. Aggregate stop-loss looks at the group's total claims and pays any amount above a pre-determined amount. Finally, aggregating-specific stop-loss coverage sums the amount above a specific deductible on an individual basis, and then applies that amount to an aggregating deductible; the insurance company will cover amounts above both of these deductibles. In my talk I will cover the details of each type of coverage along with an analysis of what factors affect a company's rates.
3:30 PM
All are welcome!
Palenske 227
April 30, 2015