Claim Reserve Estimation Workbook (CREW)


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Develop accurate reserve estimates and monitor your business at a high level with our powerful yet simple tool for estimating incurred but not paid (IBNP) medical claim liabilities.

CREW™ stands out from the pack with its efficient, flexible Microsoft Excel-based template that uses a single, simple-to-use workbook. The flow of the calculations can be easily understood by actuaries and non-actuaries alike. CREW’s primary asset is its ability to accommodate unusual claim payment patterns, as well as changing enrollments, benefits, unit costs, and other key factors like changes in capitation and provider contracts. The result is a far more accurate estimate.

A better monitoring tool with more accurate estimates

CREW performs a series of actuarial-based claim-reserve calculations using historical, client-specific claims and exposure data. CREW also offers reporting features that make it an exceptional management tool.

CREW can:

  • Summarize claims and calculate loss ratios by incurred month, quarter, and calendar year
  • Analyze incurred claim trend and reflect seasonal patterns including working day adjustments by service category
  • Calculate restated reserve levels using claim run-out data
  • Sensitivity-test best estimates against alternative assumptions
  • Graph results to better display estimates
  • Summarize results several ways to identify patterns and outliers

Flexible approach supports unique client needs

CREW uses a dual approach by developing incurred claim estimates based on both claims lag patterns and projections of historical costs on a unit cost basis.

The tool is designed so that the user can easily test and document the sensitivity of different sets of assumptions on the resulting IBNP estimate. This feature is critically important because reserve estimates are often very sensitive to the assumptions used.

Client focus offers timely support

Milliman consultants provide training and ongoing support for CREW users. In our thorough, half-day training session, we give CREW users a comprehensive understanding of how to use this tool, typically using the client’s data as part of the process. Any necessary client-Milliman interaction is seamless and efficient because Milliman uses the same model the client licenses to develop the reserves. Data concerns are eliminated, and advice is easily shared.

Get started

Any entity with claim run-out risks and reserve estimation needs can benefit from CREW. Whether you set reserves for one cohort of claims or many, CREW easily adapts to your needs. Contact us today to find out how CREW can help you develop more accurate reserve estimates and gain a new insight on your business.

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