Disability insurance and group life insurance

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Milliman offers specialized expertise to its clients in the areas of disability insurance and group life insurance. This support ranges from actuarial valuations and vendor selection to plan design and pricing.

Disability insurance covers a wide range of benefits for time away from work. Many of these benefits are short-term in nature, including sick pay, paid time off, parental leave, local and state sick leave plans, and short-term disability. We can assist employers in ensuring that these and other leave programs fit together well and provide employees with both needed financial support and an incentive to return to work in timely fashion. We believe strongly in the value of collecting data and preparing detailed cost models to assess the impact of plan changes, whether due to mergers and acquisitions or an evolving benefit strategy.

Long-term disability insurance, which pays benefits when shorter-term plans have been exhausted, is another area of expertise for Milliman. We perform actuarial valuations and related work for numerous employers and insurers each year. Our employer work includes both private sector (ASC 712) and public sector (GASB 43 and 45) analysis. In our view, actuarial valuations are only a starting point for more comprehensive support. For many of our clients, we also perform detailed experience studies, benchmarking, and plan design work, providing the insight employers need to make informed decisions about their benefits.

Group life insurance, sometimes viewed as a commodity product differentiated only by price, can, in fact, be a very complex offering. We frequently assist employers in evaluating group life offerings, including accidental death and dismemberment (AD&D) and disability waiver of premium benefits. We can help in managing underwriting rules and premium rates for both employer-paid and employee-paid life, while monitoring annual experience trends to identify changes that may be required. Finally, we can help employers and insurers communicate on a range of service and technology issues—from claim payment to the collection of evidence of insurability—that simplify the benefits experience for employees.

For those employers that have fully insured plans or that obtain administrative services through third party vendors, we also provide support in the vendor selection process. That can be as simple as providing feedback on RFP documents prepared by an employer or as comprehensive as running the entire RFP process from data collection to finalist meetings and vendor selection. Our work with both insurers and employers provides us with unique insight on how insured plans are priced and underwritten, allowing us to assist employers in negotiating favorable proposals from insurers.

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