Monthly
Variance Review
Paid claims marked against the pricing position established at audit. Deviations flagged, attributed, and routed to the governance file. The CFO sees the position move the same way a trading desk sees P&L move.
Operating Discipline · The Desk
How a desk actually runs.
A derivatives desk does not produce a renewal deck once a year and call it governance. It marks the position on a cadence, governs the data on a standard, and engages the counterparty — the CFO — on terms the CFO sets. This page describes that discipline.
§ I · Cadence
The position is marked on a schedule, not at renewal.
Quarterly
Greeks Scorecard
Delta, Gamma, Vega, Theta, Rho re-scored against current experience. Convexity in the catastrophic tail, realized volatility of PEPM, and theta drag on the renewal cycle — reported as numbers, not narrative.
Annually
Actuarial Readout
A full actuarial restatement of reserves, IBNR, trend, and stop-loss attachment. Board-defensible. Audit-committee deliverable. Signed by a credentialed actuary on the desk.
§ II · Data Handling
Fiduciary by construction.
The desk operates to a standard the plan's ERISA fiduciary can defend in front of an auditor, a regulator, and a participant class. Nothing about it is convenient. That is the point.
- Encrypted transfer
- TLS 1.3 in transit, AES-256 at rest. Keys rotated quarterly.
- Minimum necessary
- De-identified claim files only. We request what the calculation requires and nothing else.
- Never PHI
- Protected health information is never transmitted to, processed by, or stored on the desk. Ever.
- ERISA-grade chain of custody
- Every file logged, every access stamped, every artifact retained for the plan's fiduciary record.
§ III · Audit Pipeline
Forty-five days. Then a decision the CFO owns.
01
Day 0 – 45
Position Volatility Report
Full claims reconstruction. Network repricing analysis. Actuarial reserves restated. A repriced binding quote delivered to the CFO, not a PowerPoint. No fee out of pocket.
02
Day 45
CFO Election
The CFO reviews the readout and elects — or declines — broker-of-record conversion. There is no obligation. If the CFO declines, the engagement ends and the readout is theirs to keep.
03
Day 45+
Ongoing Governance Regime
If the CFO elects conversion, the desk assumes broker of record and the cadence above begins. Commission is paid by the carrier on the bound policy. No invoice ever reaches the employer.
§ IV · Engagement Model
Audit first. No fee out of pocket.
The Position Volatility Report is delivered at no cost to the employer. Forty-five days of full actuarial work — claims reconstruction, network repricing, reserves restated, a repriced binding quote — and the CFO owes nothing.
The desk is paid only if the CFO elects broker-of-record conversion after the readout. In that case, commission is paid by the carrier on the bound policy. There is no retainer, no consulting fee, no invoice to the employer. The economics align to the carrier, not to the plan.
The CFO sees the work, then decides. That is the entire commercial model.
Who is pricing this
A desk, not a vendor.
Hedge Actuarial was founded on forty years of derivatives pricing experience — twenty of them on the floors of the Chicago Mercantile Exchange and Chicago Board of Trade, pricing U.S. Treasury options. Over fifteen billion dollars traded. Seven international derivatives patents. A twenty-two-million-dollar analytics platform sold to the CME.
The desk brings a full actuarial bench with deep experience across liability forecasting, LSTM and Unobserved Components modeling, and multi-billion-dollar insurance book management.
We are not a software vendor. We are not a benefits consultant. We are the desk that prices, marks, and governs the position — directly for the CFO who carries it.