Author: Amy Earhart-Connell
In the evolving landscape of reinsurance, the rising costs and increasing frequency of high-severity claims pose significant challenges. Among these, claims related to Neonatal Intensive Care Units (NICU), particularly those stemming from premature births, have become a critical area of concern.
As loss ratios escalate and the financial burden grows, stakeholders are driven to gain a deeper understanding and develop innovative strategies to effectively manage these high-cost claims.
Over the past decade, the percentage of premature births has remained relatively stable both in the U.S. and globally. Nevertheless, premature births continue to be a leading cause of NICU admissions. Prematurity is classified based on gestational age, with full-term births occurring at 40 weeks and any birth before 37 weeks considered premature. Within this spectrum, late preterm births occur between 34 and 36 weeks, moderately premature between 32 and 34 weeks, very preterm under 32 weeks and extremely premature before 25 weeks. Each category presents distinct challenges and costs, adding to the complexity of managing NICU claims. While the overall rate of premature births may not be increasing, there is a notable decrease in mortality rates and an improvement in survivability among premature infants.
This article explores the nature of premature births and their impact on NICU claims, highlighting the implications for reinsurance risk and the need for innovative solutions.
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