How and Why We Are Different

Actuarial Work-Products that are generated by a Web-based computer program constitute the first major change in actuarial methodologies since the introduction of binary-based computing technology in the 1950s.

Actuarial Work-Products offer improved accessibility, affordability, professional quality, efficiency, utility, preparation time and user-friendliness.

Actuarial Work-Products, in addition to the numerous advantages herein cited, provide these three valuable features: Web-based data storage, e-mail communication, and full electronic billing which may include a bank draft or a plastic card.

Actuarial Work-Products are created whereby the primary operations (data input and calculations) are divided into two separate functions each with its own set of controls and disciplines; this is a major departure from standard actuarial practices. Because of its increased importance in the creation of the work-product, the function of data input necessarily requires increased control and review procedures.

Actuarial Work-Products are generated with structured input and output and a preset fee without the use of billable time.

Actuarial Work-Products are offered with four priorities of motivation: (a) Priority One is the obligation of all business and professions to find, build and sell a cheaper and better mousetrap and do so fairly which obligation is traceable to our national and state framework of trade and commerce laws and court decisions; (b) Priority Two is the need to be as transparent as possible and to avoid any conflicted-interests thereby complying with the recent disciplines put in place by Sarbanes-Oxley, AICPA SOP-70, etc.; (c) Priority Three is to meet the highest level of professionalism; and (d) Priority Four is to (i) honor the best and traditional high standards of business ethics by adopting a reasoned and balanced view to both short and long range sales and profit goals and (ii) avoid the unwise business practice of planning for short range sales and profits goals only. Note: actuaries traditionally have been strong advocates and practitioners of the (ii) practice.

Actuarial Work-Products are those that use to the greatest extent possible such mathematical disciplines as (a) model building, (b) probabilistic (as opposed to deterministic) techniques and (c) Monte Carlo simulations.

Actuarial Work-Products are those that have the following characteristics: (a) are designed for the many who need them and have appeal to a greatly expanded range of potential users, (b) are needed to help rein in the exorbitant and out-of-control costs of administering our private health care programs, (c) have applicability beyond health care plans: (d) are consistent with the earlier cited goals by being both less costly and more user-friendly than other options; and (e) may become a more popular decision making tool by health care plan sponsors and practitioners.

Actuarial Work-Products are convenient tools in global economics because they are independent of time, distance and language.

Actuarial Work-Products are particularly useful where the continuity of calculations is a factor (e.g., claim reserves done quarterly, economic value of plan benefits where the plan is frequently amended).

Actuarial Work-Products are designed and administered in a manner whereby the liability for any error or mishap is clearly predetermined as either (a) assumable by the actuary or (b) one of a clerical nature resulting in a correction only (conditional on there being no fraud or gross misrepresentation).

Actuarial Work-Products is an improved and enhanced technology for these reasons: (a) the bifurcation of the data entry from the computation is advantageous in that the data may be inputted by those closest to its source and with greater understanding of such data than the actuary (TPA, e.g.); (b) having the calculation done stochastically by computer results in increased consistency, reliability and accuracy as well as providing the end-user with greater understanding; (c) the expanded data storage capacity and computer-power makes practical a wide range of tests, comparisons, etc. that would not be possible with the normal method of calculation; and (d) the inclusion, as an integral part of the work-product, of the inputted data in its entirety makes the task of the auditor significantly easier and as well as being a major factor for the activity to be free (or virtually so) of any litigation risk.