Aaron N. Hillebrandt
Laura A. Maxwell
Timothy C. Mosler
Arthur R. Randolph II
Robert J. Walling III
Roosevelt C. Mosley Jr.
Derek W. Freihaut
Joseph A. Herbers
Pinnacle effectively presented their findings in person before a meeting of the New Mexico Medical Society.
Pinnacle’s consultants have provided both testimony and expert reports in a wide variety of administrative hearings, lawsuits, arbitrations and other proceedings.
Pinnacle consultants deal with auditors daily, assisting them in serving their customers and evaluating the work products of other actuaries.
Pinnacle’s consultants are experienced in helping
lawyers ask the right questions and understanding the answers in depositions of
other actuarial expert witnesses.
Assessing the reasonableness of indicated loss and loss adjustment expense reserves after the analysis is completed is an essential element of the loss reserve analysis. In particular, measures such as loss ratios, changes since the prior evaluation, implied claim frequencies and severities and costs per unit of exposure are a few of the diagnostic tests employed when considering the reasonableness of indicated reserves.
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.
Pinnacle recognizes that state regulators often walk a tightrope between protecting consumers and encouraging business growth. Whether it’s a need to determine suitability of proposed rates, identify if a company’s loss reserves are actuarially sound, determine if market availability and affordability needs are being met, understand the impact proposed legislation will have on a market or any of a wide range of other requirements, you need a partner with the skills and insights to help you fulfill your responsibilities to your constituents.
Pinnacle has the background and expertise necessary to help you find the right solutions for your toughest challenges. Whether it’s expert testimony, loss reserving, financial modeling and testing, rate filing reviews, assistance with governmental insurance programs or legislative costing and market analysis, we provide an experienced, in-depth and up-to-date knowledge and expertise. More importantly, we understand the intricacies of governmental requirements, including meeting tight timelines and following unique procedures, and strive to communicate complex actuarial topics in plain language.
Our actuaries have worked in state insurance departments and other state agencies as employees and consultants, and are focused on providing you with valuable intelligence that comes from similar work for other regulators. Our industry background includes:
January 2019 APEX Webinar
Statements of Actuarial Opinion at Year-End 2018
Authored by Joseph A. Herbers and Aaron N. Hillebrandt.
December 2018 APEX Webinar
ASOP Disclosures: A Professionalism Quiz
Authored by Laura A. Maxwell.
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Dedicated Fund Review
Pinnacle was asked by a State Insurance Department to review the financial soundness of a State controlled, dedicated fund. The review consisted of establishing the State’s outstanding liabilities and future funding needs. Detailed historic exposure and loss experience were not readily available from the State because the program was administered by individual insurers. Pinnacle designed and conducted an industry data call on behalf of the State. The collected data was then used by Pinnacle in support of their analysis. As the data was still somewhat limited, additional industry data was gathered from other states to supplement Pinnacle’s analysis. Pinnacle then provided the State with a report detailing the determination of the estimated liabilities, the indicated rate changes, and recommendations on data capturing for enhancement on future studies.
Rate Filing Review
Pinnacle typically provides state regulators expert review of company and bureau rate change filings. In a recent review of a Company’s automobile rate filing Pinnacle was able to confirm that the filed rates met the State’s rating laws and Department’s filing requirements. Using a procedure developed by Pinnacle specifically to review rate filings, the Company filing was reviewed against generally accepted actuarial principles. The Company was questioned on certain rating procedures and was able to support their procedures and selections with additional documentation to the filing. Pinnacle was then able to affirm to the Regulator that the filed rates were not excessive, inadequate, nor unfairly discriminatory and that the new rates would not produce any major policyholder dislocations. The Regulator was then able to acknowledge the Company’s filing with confidence that the Regulator had carried out his charge of providing service and protection both to consumers and to the insurance industry.
Pinnacle was retained by a major national political organization to investigate the impact of several workers compensation reforms including: implementation of mandatory managed care, privatization of state workers compensation insurance funds and the permitting of private insurers to enter previously monopolistic workers compensation states. Our analysis looked at state-level differences in rate levels, insurer experience, coverage competition, the mix of medical and indemnity claims and numerous other metrics. The study was extremely well received and ultimately presented to more than half of the nation’s governors.
At Pinnacle, we partner with you to explore whatever path it takes to find the answers you need.
July 17, 2022
Farm Bureau Actuarial Conference
July 21, 2022
July APEX Webinar -
Causes of Recent Adverse Development