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Pandemic Risk for Health Insurers, Reinsurers, and Self-Funded Plans

May 1, 2009

Analysis of:FACTBOX: Economic costs of a flu pandemic | www.reuters.com

Actuarial rate projections for health plans generally do not consider the risk of an epidemic or pandemic. A pandemic could easily increase health insurer MLR's or loss ratios by 10%. The impact on health reinsurance loss ratios would generally be leveraged, i.e. significantly greater.

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