Arthur R. Randolph II
Aaron N. Hillebrandt
Joseph A. Herbers
Timothy C. Mosler
Roosevelt C. Mosley Jr.
Derek W. Freihaut
Robert J. Walling III
Laura A. Maxwell
Linda K. Brobeck
They understand the program and always deliver when promised.
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.
Medical Malpractice Damage Caps
A state insurance regulator asked Pinnacle to determine the potential impact of several proposed tort reforms, including a change to non-economic damage caps for medical professional liability claims. Pinnacle worked with medical society to identify the most appropriate claims databases for assessing the potential legislative change. Our detailed analysis not only considered data from that state, but several others to stress test the results and provide a range of reasonable outcomes. In many cases, the specific reform’s effect, for example “I’m Sorry” legislation, was very difficult to isolate. Through this industry analysis, we identified differences well beyond a simple loss limitation to provide a more complete review of potential environmental changes that could be expected in the state.
This comprehensive analysis helped our client identify the effect of various legislative options, which empowered them to be a strong voice in the legislative debate and to influence policymaking in the state.
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:
At Pinnacle, we partner with you to explore whatever path it takes to find the answers you need.
August 10, 2020
VCIA Annual Conference
August 20, 2020
August APEX Webinar -
Flood Insurance – Past, Present and Future