Managing general underwriters (MGUs) and third party administrators (TPAs) need the knowledge and managerial skills found in insurance companies and health plans. However, unlike insurance companies and health plans, MGUs and TPAs face increased business volatility that can have a significant impact on operations, including:

• PPO relationships dissolving or changing dramatically,
• Reinsurance partners leaving the market, or deciding not to work with specific MGU’s,
• Business partners not willing to modify product offerings,
• Direct pressure to improve underwriting results.

Furthermore, while the market for MGU and TPA services remains substantial, continued increases in health care costs are driving the demand for more actionable information and creative solutions.

Tillit Consulting can provide valuable actuarial services to managing general underwriters and third party administrators. These services address business relationships with insurance carriers, reinsurance partners, network providers, and employer clients, as well as, MGU and TPA operational issues:

• Development or review of first dollar rating manuals,
• Development or review of stop loss rating manuals,
• Block of business analysis, including unpaid claim reserve estimation,
• Negotiation assistance with stop loss carriers,
• Financial analysis of PPO contracts,
• New product design and pricing assistance,
• Data mining and reporting assistance,
• Regulatory filing assistance,
• Employer support services.

As an independent consultancy, Tillit’s expertise and business approach is an ideal fit for the MGU and TPA marketplace.