Cirdan’s client’s financial results were significantly adverse to their budget. The client’s data was complex; in particular, it involved data from two different claim systems as a claim migration was in process during the experience period.
Cirdan acquired the detailed claim data from both claims systems to:
- Determine the key drivers of the variance and provide the anticipated impact of the key drivers on future budgets
- Create a trend tool to easily review their trend on various lines of business and categories of service
- Make recommendations to improve the budget setting process, including additional analysis of large claim variations
- Perform an independent review of the estimates of incurred but not reported claims, and provided suggestions to refine the reserving process
The plan leadership and their Board developed a thorough understanding of the drivers of the variance, the implications for the current budget and ways to improve their future rate setting and budgeting processes.