Arthur R. Randolph II
Joseph A. Herbers
Derek W. Freihaut
Ken J. Hawkins
Robert J. Walling III
Timothy C. Mosler
Laura A. Maxwell
Gregory W. Fears, Jr.
Michael K. Chen
Aaron N. Hillebrandt
Darcie R. Truttmann
Erich A. Brandt
Handle unique problems with alacrity. Thanks for job well done.
Pinnacle helps alternative market risk owners, captive managers and service providers determine risk retentions that optimize the balance between the cost of risk transfer and loss volatility.
Pinnacle consultants deal with auditors daily, assisting them in serving their customers and evaluating the work products of other actuaries.
Pinnacle provides loss reserve analyses and other
diagnostics in support of collateral negotiations associated with deductible
and/or self-insured retentions.
Pinnacle is experienced developing cost allocation mechanisms
by member or department in the most equitable manner using elements such as –
exposure, geographic cost differences and actual loss experience.
Management sometimes wishes to reflect the time value of money in funding projections, accruals for unpaid claims liabilities and other valuations. The two most important parameters for doing so are the assumed interest rate and the underlying claim payment pattern. Assessing reasonable values for these parameters is not trivial as the interest rate may need an adjustment for risk while the claim payment pattern may not be readily available.
Whether it’s a captive insurance company, large deductible program, self-insured entity, public entity pool or syndicate, an alternative market entity is a risk retention program outside the traditional commercial property and casualty market. By virtue of the growth in the alternative markets for more than 30 years, the premium volume outside the mainstream markets is now greater than that written by the traditional markets.
Pinnacle understands the needs of those involved in the alternative markets, the most important of which is a desire to control insurance costs over the long term. Each program has unique risk characteristics that are often the impetus for the program formation in the first place. Differing geographic, industry or line of business mixes of business may dictate customized approaches to reviewing the risk profile for your program.
Pinnacle has expertise in a wide variety of lines of business, regulatory jurisdictions and industry niches. Not only do we have a team of experienced consultants at your service, we also have the local knowledge unique to individual market segments such as:
October 2020 APEX Webinar
An Update to Pinnacle’s Risk Retention Group Benchmarking Study
Authored by Erich A. Brandt and Gregory W. Fears, Jr. and Robert J. Walling III.
April 2020 APEX
Cyber Insurance: What’s in Store for Captives
Authored by Nicholas Gurgone and Aaron N. Hillebrandt.
See More »
Pinnacle provides the loss reserve analysis and statement of actuarial opinion to the Bermuda-domiciled captive of a major national long haul trucking company for over a decade. This reserve analysis examined the captive's coverages for excess automobile liability coverage, deductible reimbursement under a large deductible workers compensation policy and cargo liability and physical damage coverages. The analysis utilized both company loss development triangles and industry benchmarks. Once the reserve analysis was completed and discussed with the client, the statement of actuarial opinion was produced to comply with regulatory requirements. Our excellent working relationship with the captive’s auditors simplifies the work of both firms on behalf of the captive.
Pinnacle serves many of the largest group captives in the world, many of them domiciled in the Cayman Islands. These reserve analyses are typically produced twice a year and serve multiple purposes. First, they provide a range of reasonable estimates which management uses to determine their best estimate of ultimate losses and unpaid claims liabilities. Second, these reserve estimates can then be allocated to individual members to determine the outstanding liabilities and potential future assessments, if any. Finally, the allocated ultimate losses become the basis for renewal pricing estimates for each member. Pinnacle’s approach to estimating and allocating reserves in group captives is unique in the industry and sets our alternative practice apart with its efficiency and accuracy.
Pinnacle was asked by a large self-insured regional transportation authority to assess the impact of increasing their self-insured retentions for both workers compensation and automobile liability. We developed a stochastic simulation analysis, based on the program’s historical claims experience and industry benchmarks, that examined not only the increase in expected losses but the program’s additional potential loss variability. Finally, we discussed with the customer the relationship between their current capital position, as well as the current reinsurance market, to ensure the retention they selected for their program was appropriate for them. The authority ultimately increased their retentions, put some of their excess capital to work, and realized substantial savings in their reinsurance costs.
At Pinnacle, we partner with you to explore whatever path it takes to find the answers you need.
October 21, 2020
November 19, 2020
November APEX Webinar -
State of the Florida Homeowners Market