FCAS, MAAA Senior Consulting Actuary
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Pierogis and Palaces Jan 9, 2018
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Erich has considerable experience in assignments involving loss reserving, funding studies, cost allocation mechanisms, loss cost projections, competitive analysis, captive feasibility studies and financial analysis of insurance companies.
Erich has made numerous presentations to brokers, corporate risk managers, and CFOs regarding loss reserving, future loss projections and how company characteristics impact actuarial calculations. He currently serves as a member of the Casualty Actuarial Society (CAS) Syllabus and Examination committee.
Erich also works with students and faculty at Illinois State University (ISU). He engages in joint research and speaks at actuarial club and the Katie School of Insurance & Risk Management functions. He is a member of the advisory boards for the actuarial science major at ISU and the Milwaukee School of Engineering. Erich is also on the board of directors of the Illinois Shakespeare Festival.
October APEX Webinar An Update to Pinnacle’s Risk Retention Group Benchmarking Study Authored by Erich A. Brandt and Gregory W. Fears, Jr..
July APEX Webinar Causes of Recent Reserve Development Authored by Erich A. Brandt and Gregory W. Fears, Jr..
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Cayman 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.
Funding Study
Pinnacle was approached by an aircraft manufacturer to provide recommended funding for various aviation and liability coverages. Pinnacle’s initial steps included discussing coverages to be provided and what data was available to complete the funding study. The captive was a start-up with no loss information on which to determine appropriate funding levels. Pinnacle was able to determine that the National Transportation Safety Board (NTSB) had a database of aircraft incidents that recorded both the manufacturer and model of the aircraft involved in the incident. Since the manufacturer was able to provide the number of units produced, Pinnacle was able to determine the frequency and severity of the incidents and project ultimate funding levels. The captive is currently operational after receiving regulatory approval.
U S Domestic Statement of Actuarial Opinion
Domestic U.S. property/casualty insurers and risk retention groups are required to file an Annual Statement with state regulators each year by March 1. Part of that filing includes the submission of a formal Statement of Actuarial Opinion (SAO) by a qualified Appointed Actuary as to the reasonableness of held loss and loss adjustment expense reserves. The SAO must be one of five types:
In addition to the SAO, most jurisdictions require an Actuarial Opinion Summary (AOS) providing more detail on the Appointed Actuary’s specific findings by March 15. Lastly, a formal report narrative in support of the SAO and AOS is required to be available by May 1.
As the SAO is a compliance document, the primary audience is state regulators but the individual company must arrange for the service to be provided.
A recent SAO for one of our clients touched on many of the required disclosures:
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July 17, 2022 Farm Bureau Actuarial Conference
July 21, 2022 July APEX Webinar - Causes of Recent Adverse Development