Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - The introduction of Risk-Based Capital (RBC) standards has significantly transformed insurance regulation, allowing for a more nuanced approach to financial stability and policyholder protection [6][8] - Structured reinsurance is highlighted as a strategic tool for insurance companies to optimize capital utilization, enabling them to meet regulatory requirements while pursuing growth opportunities [8][79] Summary by Sections Background - Risk-Based Capital (RBC) emerged to address the limitations of fixed capital requirements for insurance companies, which did not account for individual financial conditions or risk profiles [2][3] - The establishment of RBC standards was prompted by a wave of insurer insolvencies in the 1980s, leading to the development of tailored RBC formulas for different insurance sectors [3][4] Risk Assessment - The RBC framework evaluates various risks, including insurance affiliates risk, asset risk, underwriting risk, interest rate risk, and business risk, providing a more accurate picture of an insurer's financial health [5][10][11] Capitalization - The report discusses the complexities of capital allocation within insurance companies, emphasizing the need for optimal strategies to meet regulatory and stakeholder requirements [12][13] Structured Reinsurance - Structured reinsurance is presented as a solution for managing capital requirements, allowing companies to cede a portion of their risk and reduce capital needs while maintaining growth potential [8][35] - The report details how structured reinsurance can lead to significant capital release, enhancing capital efficiency and reducing costs associated with capital requirements [38][40] Capital Efficiency - The analysis indicates that structured reinsurance can improve capital efficiency, allowing companies to achieve required returns on capital at lower costs compared to traditional methods [50][76] - The report emphasizes the importance of understanding the cost of capital in relation to reinsurance costs to determine the financial viability of structured reinsurance transactions [50][76] Pricing Impact - The report outlines how structured reinsurance can influence pricing strategies by reducing the capital charges associated with different health insurance products, ultimately leading to more competitive rates [60][61] - It highlights the potential for structured reinsurance to lower profit and growth margins while still achieving desired financial outcomes [70][78]

Investment Rating - The report does not explicitly state an investment rating for the stop loss market, but it provides insights into growth trends and market dynamics that could inform investment decisions. Core Insights - The stop loss carrier premium volume increased to $35.5 billion in 2023, reflecting an 11.9% growth rate from 2018 to 2023, with 10.4% of this growth attributed to cost trends and business mix changes, while the remainder was due to increased enrollment [4][22]. - Claims have increased at a faster rate than premiums, resulting in a deterioration of loss ratios from 79.5% in 2018 to 80.3% in 2023 [4][22]. - The trend towards self-funding among employers is growing, with 65% of covered employees in self-funded plans, and 83% of large firms opting for self-funding [25][21]. Statutory Financial Results (2018-2023) - The average covered lives increased from 56.9 million in 2018 to 61.1 million in 2023, with a 5-year average growth rate of 1.4% [4]. - Total premiums rose from $19.974 billion in 2018 to $35.066 billion in 2023, with an average annual growth rate of 11.9% [4][19]. - Premiums per member per month (PMPM) increased from $29.24 in 2018 to $47.86 in 2023, reflecting a 10.4% average annual growth rate [4][11]. Market Trends - The medical stop loss market is projected to grow by 7.5% to 8% in the upcoming year, driven by rising healthcare costs, particularly hospital expenses [21]. - Enrollment in the fully insured group medical market has declined by over 15% in the past five years, indicating a shift towards self-funding [4][22]. - Large claims, particularly those exceeding $1 million, have increased significantly, with a notable rise in claims attributed to cancer treatments and complex conditions [34][35]. High Dollar Claims Trends - Claims exceeding $2 million have increased by 55% from 2018 to 2022, with claims over $5 million seeing a 292% increase during the same period [34][35]. - The frequency of claims at higher thresholds continues to rise, with significant increases in claims related to transplants and cancer treatments [34][35]. Carrier Rankings and Market Share - The top 15 carriers represent almost 80% of the total stop loss market, with the largest carriers being CIGNA, UnitedHealth, and CVS Health (Aetna) [18][19]. - UnitedHealth experienced the largest relative growth in premiums among the top carriers, with a growth rate of 22.2% from 2018 to 2023 [19][18]. Advanced Analytics Applications - Advanced analytics are being utilized to identify areas for profit improvement and optimize growth within stop loss portfolios [4]. - The GC Mosaic Predictive portfolio model and Oliver Wyman's Health Data & Analytics team are focusing on large claims to identify individuals at risk [4].

� Mercer The changing face of real estate 1 The changing face of real estate welcome to brighter The rise in global interest rates and the slow return to the office presented headwinds for real estate, but many other secular trends, such as technology shifts, demographic changes and housing shortages, suggest leaning into the asset class. Real estate is a crucial component of the global economy, offering value independent of GDP growth and serving as a partial inflation hedge for investors. It provides inco ...

| --- | --- | --- | --- | --- | |-----------------------|-------|-------|-------|-------| | | | | | | | � Mercer | | | | | | | | | | | | 全球人 | | | | | | 才趋势 | | | | | | 2024 | | | | | | 交通运输&物流行业洞察 | | | | | | welcome to brighter | | | | | 目录 1. 2024年行业现状 2. 业务性质的变化 3. 组织文化的演变 4. 加强全面健康福祉 5. 人与数字化的融合 6. 美世2024年《全球人才趋势报告》 7. 总结 点击本报告中任何页面右侧 的按钮，跳转到该章节。 1. 2024年行业现状 趋势 目录 行业概览 业务驱动力 文化 TR型 数字化 总结 | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |--------------------------------------------- ...