NFP Creates Cost Impact Modeling Tool to Address Projected Benefit Costs Associated with COVID-19
Employers can work with NFP to estimate costs and inform benefits strategy in the wake of a global pandemic
NEW YORK – June 25, 2020 – NFP, a leading insurance broker and consultant that provides property and casualty (P&C), corporate benefits, retirement and individual solutions, today introduced its COVID-19 Cost Impact Model. The model is a dynamic tool designed to support employers as they assess the effects of the pandemic on their benefit costs and make decisions on potential plan adjustments that align with their overall benefits strategy.
The NFP COVID-19 Cost Impact Model uses proprietary situation modeling to project future infections, testing, diagnosis and treatment. Through a comparison of an established baseline of testing and positive infection rates in a client’s state and country, the model can project estimated costs. The modeling scenarios address testing and treatment costs for up to 180 days to ensure reliable projections. NFP will update the model as new information and data surrounding COVID-19 becomes available, ensuring projections reflect the application of the most relevant information. Refining the projections with the latest data will help clients enhance their ability to prepare for the remainder of this pandemic and make informed financial decisions for future needs.
“COVID-19 has created many challenges for employers and we’re excited to support our clients with data-driven solutions that help them estimate costs and inform actions,” said Kim Bell, NFP’s senior vice president, head of health and benefits. “We remain focused on aligning the challenges clients face with effective solutions and tools like our COVID-19 Cost Impact Model.”
In partnership with Milliman, NFP has also developed MedFactor, a proprietary plan value modeling tool. This internal resource allows NFP to estimate the relative value of plan design changes. By entering a client’s base plan features and contrasting those features with a proposed alternative, NFP can calculate the percentage change in actuarial value. This provides employers with valuable insight on the impact of proposed changes and confidence in making complex decisions.
“In an environment with so much uncertainty, there is tremendous value in tools that use data to help guide us to the right decisions,” said NFP chairman and CEO Doug Hammond. “We will continue to commit resources to developing tools and expertise that help our clients solve problems and plan for the future.”
NFP is a leading insurance broker and consultant providing specialized property and casualty, corporate benefits, retirement and individual solutions through its licensed subsidiaries and affiliates. NFP enables client success through the expertise of over 5,600 global employees, investments in innovative technologies, and enduring relationships with highly rated insurers, vendors, and financial institutions. NFP is the 5th largest benefits broker by global revenue, 6th largest US-based privately owned broker, and 8th best place to work in insurance (Business Insurance); 10th largest property and casualty agency (Insurance Journal); and 13th largest global insurance broker (Best’s Review).
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