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Circular No 68
General PHIAC Circulars
Circular No 68
Contact Officers:
Gary Kennedy (02) 62853133
Date 8 October 1997
REINSURANCE PROCESSING VARIATIONS
Organisations will be aware that variations to claiming patterns occur from time to time. A recent example was the large increases in the reinsurance pool in some States for the June quarter 1997. Some large funds showed dramatic increases in their benefits paid over the quarter. These variations have a direct and immediate impact on the reinsurance pool which, in turn, has a direct impact on all organisations whether paying into the pool, or receiving from the pool. Financial planning can become problematic for all organisations.
Often organisations will be aware of changes that may affect processing patterns many months before they occur. Therefore, it is possible in many circumstances for organisations to predict large claiming variations.
Organisations that are in a position to predict large fluctuations in claims benefits are requested to advise PHIAC when they become aware of such variations. This will then allow PHIAC to alert other funds within the States and to some extent assist their financial planning processes.
PHIAC has not been alerted to any unusual variations for the September quarter 1997 as yet.