Health Underwriter Career Options- Engaging the Future -

Presented by Tony NistaUnderwriting Business LeaderIndependent Insurance Professional

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SOA June 2011 Health MeetingSession 16PD – What Does the Future Hold for Underwriting?

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Agenda

What is the Reality of HCR Potential Impact on Career Underwriters Health Underwriter Skillset/Qualifications Potential Underwriter Career Paths Preparing to Engage the Future What Next?

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Level Set

HCR Will Not Obliterate Health Underwriting Health UW Process/Technology Will “Evolve” Possible to Conform to HCR and Still Profit Health Underwriting Will Retain “Relevancy” But What If???

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But What If??? …Health Care is no Longer Conducive to Health UW?

…Conventional Health UW Skills are no Longer Relevant?

…What if the Sky Did Fall?

The Health Underwriter Must Prepare for Armageddon!

“No one has to go. We can all stay here on Earth and wait for this big rock to come and kill everyone and everything we know.”

Bruce Willis, Armageddon

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Health Underwriter Skillset/Qualifications Financial Acuity (face it, if you’re not good at math…) Investigator (gather facts, piece together the story) Intuitive Reasoning (what am I missing or not being told?) Analysis and Projection (what will it look like going forward?) Risk Taking (when all is said and done, still an unknown)

The Health Underwriter Takes Known History, Proven Mathematical Theory/Tools, the Element of the Unknown, and Predicts the Future.

Based on this Skillset, What Can an Underwriter do “After” UW?

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Potential Health Underwriter Career PathFBI Agent

Archeologist

Futurist

Politician

Police Detective

Hostage Negotiator

Stunt Pilot

OK, so These are NOT Very Practical!

“Of Course Everyone Thinks They Have a Sense of Humor…Even the Ones Who Don’t.”

Rick Moranis, My Blue Heaven

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Potential Health Underwriter Career Paths(For Real This Time)

Non-Health Underwriting Actuarial Sciences Employer Benefit Plan Consulting Health Care Provider Consulting DOI Auditing PEO Plan Management

Let’s Look at Each in More Detail…

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Non-Health Underwriting

Most Logical Step – Lateral Move Life, Dental, Workers Comp, Worksite Products Not Impacted by HCR (at Least Not Yet!) Many UW Skills are Transferable Between Products Health UW Skillsets Are Basically the Same P&C Also an Option (although more of a stretch)

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Actuarial Sciences

Logical Progression in an UW’s Career Actuarial and Underwriting are Very Similar Many Underwriters Report to Actuaries Many “Underwriters” are Actuaries Actuarial Has Greater Scope and Career Options

“I suppose I could collect my books and go back to school.”

Rod Stewart, Maggie May

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Employer Benefit Plan Consulting

Also a Logical Career Progression for an Underwriter Health UW Skills Very Appropriate for Benefit Consulting HCR Opens Greater Opportunity for Consulting Services Employers Will Want/Need Independent Guidance UWs Have Experience in Demand by Client Employers

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Health Care Provider Consulting

A Slight Departure, But Still Very Appropriate Providers Gain From “Carrier Seasoned” Professionals Contracting, Negotiating, Health Care Analytics Inside Track on Carrier Strategies Understand Your “Opponent”

“Keep Your Friends Close and Your Enemies Closer!”

Machiavelli, The Prince

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DOI Auditing

Actually, Any Functions Within the DOI HCR Creates Increased Audit Opportunities Many HCR Components are Enforced by Local DOIs Underwriting Experience is Key in the Audit Process Underwriters Know Their Audit “Targets”

“It’s always the underwriter ends up doing 24 months in Danbury minimum security prison!”

Michael J. Fox, The American President

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PEO Plan Management

PEOs are the “Employer” not the “Carrier” PEOs Can be Fully or Partially Self-Funded Small Group UW is an Especially Valuable Skill Health Coverage is “Incidental” to the PEO Product PEOs are NOT Going Away Anytime Soon! PEOs May be the Next “Private Health Care Exchange”?

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Summary

Health Underwriting Will NOT Disappear Due to HCR Hope for the Best, But Prepare for the Worst! Education Opportunities (HIA, LOMA, Actuarial Exams) Increase Marketing Appeal (Self-Promotion) Focus on Related Industry Positions Keep an Open Mind to New and Exciting Opportunities

The Earth is rotating at 1,000 miles per hour and shooting around the Sun at 1,000 miles per minute and the Sun is hurtling through the Milky Way at “Ludicrous” speed.

Enjoy the Ride!!!