Advanced Wider Fields: A Challenge for Actuaries Part II
IFRS17: Distorting Effects on CSM in the Application of the Fair Value Approach (Stefano Prina)
With its introduction, the great news brought by IFRS17 concerns the Contractual Service Margin. Easy to compute for the new contacts, the problem arises in evaluating it for the existing business. When the Full Retrospective Approach is not applicable due to a lack of available data, the Fair Value Approach is suggested: consider the Capital Requirements as a driver to determine the future expected profit of the business. Here is where the problem arises: there are cases in which the high or low capital absorption of the business leads to miss-estimate of the expected future profits, with distorting consequences on the income statement.
- Supplementary Health Private Funds Private
- Healthcare Risk in Italy (Alessandra Morgante)
In Italy, public healthcare system (SSN) offers, free of charge or upon payment of a ticket, extensive coverage to Italian citizens: primary care, hospital care, outpatient care and social and health care. In a socio-economic context that is rapidly changing (due, for example, to the aging of the population) with consequences on the economic sustainability and efficiency of public healthcare system, awareness of the need to combine public healthcare with supplementary health private funds increased.
Private healthcare expansion offers new challenges to Actuaries who have all the skills to support supplementary health private funds in assessing demographic, morbidity and financial risk, calculate premium costs, design healthcare plans, identify reasons for cost increases, in capital management and reinsurance.