Yes. Please See Attached Third Party Release Agreement

Yes. Please See Attached Third Party Release Agreement

  1. Who was the previous vendor and how much was charged for a year of services?

Milliman, $200,000.

  1. Can you provide a copy of the previous year-end actuarial reports?

Yes. Please see attached third party release agreement.

  1. Can you provide a copy of the previous vendor’s successful proposal?

The successful vendor’s proposal can be found at Select the e-contracts link and search under contract number 4300339618.

  1. About how many total claims are reported in a typical year?

The number of claims reported fluctuates with premium. Last year SWIF’s written premium was $219 million and there were 8,298 injury reports.

  1. What is the oldest fiscal year that has an open claim?

The oldest open claim is from accident year 1960.

  1. Can SWIF provide historical claim reports, e.g. as of 12/31/13, 12/31/12, 12/31/11, …, if needed?

Yes

  1. Does SWIF have reinsurance coverage?

Yes. Effective 10/1/2014, $75,000,000 xs $15,000,000.

  1. How long has the current claim service company (TPA) served SWIF? Has there been a change in TPAs in the past and if so, when did that occur?

SWIF currently self-administers claims. SWIF has not utilized a TPA for at least the past 20 years.

  1. Regarding RFQ Part IV-4.D.11, "Provide an annual review of a sample of SWIF’s claims,” can you be more specific? Can you provide the previous year’s review?

The current contractor, has a subcontractor review a selected grouping of claims so that they can provide the most accurate ultimate liability. This question will not be answered as this information is not necessary to formulate aresponse to the RFQ.

  1. Question: what does the following mean?
    This is a restricted solicitation under the Commonwealth’s Consulting Services, Invitation to Qualify (ITQ), - Contract #4400007410. Only those contractors qualified in the following service category(s) under Contract #4400007410 may submit a proposal in response to this RFQ.

Pensions/Investments-Area 1

Pensions/Investments-Area 2

“Pensions/Investments” doesn’t seem like a relevant practice area for the casualty actuarial work requested in the RFQ.

In order for the vendor to bid on the RFQ and be “responsive” they need to be a qualified vendor on the Consulting Services ITQ under one or both of the service categories listed.

“Actuarial Services- Actuarial Consultant Pensions/Investment Area 1”

“Actuarial Services- Actuarial Consultant Pensions/Investment Area 2”

If a vendor needs assistance in becoming qualified, attached is a “How to Submit” document. A vendor can also contact Matthew Fidler at 717-283-2090.

  1. Why are these services being put out for bid at this time?

The current contract has expired.

  1. Who is the current actuarial service provider?

Milliman.

  1. How long has the current actuarial firm been providing this service?

Eighteen years.

  1. What aspects of the current actuarial services would the Department of Labor & Industry like to retain, and what could be improved upon?

The current RFQ contains all of the services which SWIF would like performed.

  1. Is the current service providerbeing considered? Is it possible to obtain a copy of the prior winning proposal?

They will be considered if they submit a proposal. See the answer to question 3.

  1. What is the current level of annual fees paid by the Department of Labor & Industry for these actuarial services?

See the answer to question 1.

  1. To better respond to this RFP, is it possible to obtain a copy of the latest actuarial report?

Yes. See the answer to question 2.

  1. Have there been any changes in claims policy, practices, or procedures within the past 5-6 years?

There have been business practice changes which occurred approximately 2 years ago. These changes did not impact the claim handling, rather were process changes effecting the claim responsibilities of numerous claim staff. Within the past 18 months there has been an increased effort to resolve claims by Compromise & Release. There is also a current project to review and resolve older claims.

  1. For demonstrating qualifications and experience, can we use the experience and knowledge of our individual actuaries gained prior to their employment with our firm?

Yes.

  1. For the list of workpapers specified in Appendix C to be provided in Excel format: (1) It would help in responding to the RFQ to understand the use to which the Department of Labor & Industry anticipates putting the workpapers, and (2) Are range-valued spreadsheets sufficient to comply with this requirement?

The annual independent actuarial study is required by the Pennsylvania Workers’ Compensation Act (WCA) (77 P.S. 2611 (b)). Having the back-up to the report is required in case questions arise. SWIF expects excel spreadsheets showing all data and calculations.

  1. In Task A.1, as regards the 5 elements of reserves that must be specifically considered, are these elements each required to be separately estimated, or just considered within the overall reserve estimate?

Just considered within the overall reserve estimate

  1. Please confirm that the SWIF’s fiscal year-end is December 31. When after the close of the year is the actuarial data typically ready and transmitted to the actuary?

Yes. The year-end data is typically provided to the Actuarial contractor by the end of January.

  1. In what format is the actuarial data available, e.g., Excel? Would the selected actuarial firm have access to the historical loss development triangles in Excel format?

Excel and Yes

  1. In D.4, it is specified that the work must be completed within 30 days of the submission of the preliminary report. Are there any requirements as to the timing of the submission of the preliminary report itself?

The RFQ states, a date determined by SWIF. Typically, early in the second quarter.

  1. For Task D.11, “Provide an annual review of a sample of SWIF’s claims”, what is the purpose and scope of this review? How many claims have typically been selected? Is this review intended to be an actuarial review or claims expert review?

The current contractor, has a subcontractor review a selected grouping of claims so that they can provide the most accurate ultimate liability.

  1. Is it possible to provide any further detail as to the purpose and scope of Task D.16? What is anticipated here that would not be included in the overall reserve analysis?

SWIF would like to have a detailed report on reserve adequacy for all open paraplegic and quadriplegic (ICD-9 codes 344.00 - 344.1) claims. The report should include, indemnity reserve adequacy with consideration for diminished life expectancy( rated age calculations), and medical reserve adequacy with consideration for major organ failure as a result of the injury and aging process.

  1. Regarding Section IV, task D.9, what is the SWIF process for determining booked reserves?

The in-house actuarial staff performs a year-end analysis.