Public Entities

The Tollway has used Pinnacle as its workers' compensation actuary for many years. We look forward to many more.

— Public Entity


Public Entities

No matter what their purpose, government entities each have their own distinct challenges and demands. Pinnacle understands the insurance challenges these entities face and are equipped to help meet them, regardless of insurance program and service provider involved.

We are nationally-respected actuarial experts who offer a full range of services customized to meet the unique needs of public entities, including traditional loss reserve analysis for exposure within deductibles or self-insured retentions, comparing alternate program structures; analyzing retention levels; and developing feasibility study documents.

Our team of experts has a wide range of experience with individual public entity types, including:

  • Workers compensation and unemployment coverage for cities and municipalities
  • Vehicular liability for transportation authorities
  • General liability coverage for counties
  • Professional liability for sheriffs, police and fire departments
  • Property coverage for school districts and public universities
  • Other entities including park districts, toll authorities, and libraries

As well, Pinnacle is well versed in the intricacies of mechanisms in alternative markets structures for public entities, including:

  • Large deductible policies 
  • Single parent captives 
  • Group captives 
  • Association captives

Publications and Media

January 2018 APEX Webinar
Statements of Actuarial Opinion at Year-End 2017
Authored by Joseph A. Herbers and Aaron N. Hillebrandt.

Accounting and Actuarial Services: A Case for Peer Review
Best's Review January 2016 - Issues and Answers
Authored by Derek W. Freihaut.

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Case Studies

Reinsurance Price Optimization
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Reinsurance Price Optimization

Pinnacle was approached by an insurance company to provide an independent review of their reinsurance program. The first step was to review historic ceded premiums and losses by treaty layer to determine the overall reinsurer profitability. Pinnacle then independently priced the existing reinsurance program to benchmark the current market pricing. Finally, Pinnacle provided a cost benefit analysis to help the client determine the optimal retention levels for its insurance program. With this information in hand and our support, our client was able to negotiate better terms for their reinsurance program.

Retention Analysis
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Retention Analysis

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.

Self Insured Dividend / Assessment Analysis
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Self Insured Dividend / Assessment Analysis

A large group self insurance program was concerned with the amount of retained earnings and wanted to establish a policy for the minimum capital for the program to trigger dividend distributions. Pinnacle compared the program’s capitalization to a wide variety of industry standards for similar programs from rating agencies, regulators, and other sources. The results of this analysis lead to a recommended board policy regarding a minimum capital threshold for dividend distributions and ultimately to the development of an actuarially sound dividend distribution plan.

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