The FAQctuary are a series of educational papers dedicated to the insurance sector. Each issue addresses a specific actuarial topic, expressed as a question asked by market players. FAQctuary's are published by members of the Detralytics team and written in a clear and accessible language. The team combines academic expertise and business knowledge. Detralytics was founded to support companies in the advancement of actuarial science and the solving of the profession’s future challenges. It is within the scope of this mission that we make our work available through our DETRAnotes and FAQctuary series.
Our 1st FAQctuary
As part of the Own Risk and Solvency Assessment (ORSA), health insurance companies using the standard formula are required to assess the appropriateness of this formula for among others the medical inflation risk covered within the Health SCR module.
However, for some companies, the medical index does not seem to reflect the real evolution of their own medical expenses.
Therefore, we choose as topic of our first FAQctuary, the medical index in which we will attempt to answer this following question :
"How to combine market and internal medical indexes in ORSA ?"
Link to the series : https://detralytics.com/faqctuary/