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Old 09-18-2009, 06:08 PM
Andy Medina Andy Medina is offline
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Default Pricing Stop Loss Insurance

Hello everyone,

Is there a good book or online article where I can find different ways to price stop loss insurance and the pros and cons of each?

Thanks.
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Old 09-19-2009, 12:49 PM
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search www.casact.org articles on per occurrence/aggregate excess of loss reinsurance
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Old 09-19-2009, 03:56 PM
Colymbosathon ecplecticos Colymbosathon ecplecticos is offline
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I'm guessing that the OP was asking about Medical Stop Loss, which is different than P&C Stop Loss.
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Old 09-19-2009, 04:27 PM
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Look up Specific Limit Stop Loss and Aggregate Stop Loss in Group Insurance, 5th Ed.

Specific limit covers for eligible individual annual claims over a stated amount (i.e. 100,000). Aggregate covers any aggregated claims amount above a stated percentage (ie 150%) of the expected aggregated claims below the Spec limit for all members in the companies plan.

I tend to use continuance tables for claims below some amount and a lognormal distibution to estimate the tail. The lognormal is nice because it fits well and is easy to slice up the layers under the curve. I've also heard some folks like to use the pareto to estimate the tail. You can find relevent papers on the CAS site.
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Old 09-21-2009, 09:38 AM
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Quote:
Originally Posted by Andy Medina View Post
Hello everyone,

Is there a good book or online article where I can find different ways to price stop loss insurance and the pros and cons of each?

Thanks.
Why do you want to know? Is this for a school project or what?
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