Derek W. Freihaut
Arthur R. Randolph II
Christina L. Negley
Erich A. Brandt
Aaron N. Hillebrandt
Robert J. Walling III
Jordan R. Paszek
Joseph A. Herbers
Darcie R. Truttmann
Gregory W. Fears, Jr.
Travis G. Murnan
Ken J. Hawkins
Timothy C. Mosler
Laura A. Maxwell
Pinnacle did an excellent job, both crafting the report, and presenting the material. We welcome the opportunity to work with them again, and recommend them to others without reservation.
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 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.
Pinnacle has extensive experience helping insurers, captives, and self-insurance programs determine appropriate dividend levels and actuarial sound allocation methods.
As a captive manager, you need a trusted actuarial advisor who is not only technically competent but can also communicate in plain language while offering outstanding insight, analysis and service.
We offer a full range of actuarial services specific to the needs of captive managers. From traditional services, such as loss reserve and funding analyses for exposure within deductibles or self-insured retentions to comparing alternate program structures with retention levels to feasibility studies, we have the expertise necessary to help you drive better business decisions.
Pinnacle has expertise in a wide variety of lines of coverage, alternative risk transfer structures, regulatory jurisdictions and industry niches. Our expertise has been developed by our team of experienced consultants who understand the specific needs of captive managers, but also with the local knowledge unique to individual market segments.
As nationally-respected experts in alternative markets, we also offer a full range of actuarial services to a wide variety of self-insureds, including traditional loss reserve analysis for exposure within deductibles or self-insured retentions. We regularly assist clients to comparing alternate program structures, analyze retention levels and developing feasibility study documents. Regulatory authorities in jurisdictions around the world respect our quality work.
We understand the insurance challenges public entities face and we are equipped to help you meet them, regardless of your insurance program and service providers. We’re well versed on the Governmental Accounting Standards Board Statement No. 10, and understand the impact for state and local governmental entities, their public entity risk pools and other relevant accounting guidance.
Our commitment to captive managers goes beyond the basics to understanding the unique requirements of your specific industry, providing insight to a range of likely outcomes and providing you with the intelligence you need to succeed.
Benefits of Using Captives to Insure Guarantees for New Products
Captive Review's Captive Formation Guide
Authored by Nicholas Gurgone.
April 2021 APEX Webinar
Warranties, Guarantees and Actuaries: Adding Value with a Captive
Authored by Nicholas Gurgone.
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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.
In an effort to attract and retain quality physicians, a large integrated healthcare system operating in the Midwest decided to create a physician’s professional liability insurance (PPLI) alternative to the commercial markets. After a comprehensive feasibility analysis, an offshore captive insurance company (CIC) was capitalized and formed. Pinnacle actuaries were engaged to assist in the feasibility analysis and implementation of this strategy. Pinnacle’s involvement began by assisting the captive manager to develop appropriate assumptions that were incorporated into the CIC’s proposed business plan and filed with regulators. Initially, Pinnacle performed a comprehensive analysis of the current PPLI market to develop base rates, rating factors and underwriting guidelines. On an annual basis, Pinnacle re-evaluates the base rates and rating factors and recommends adjustments to reflect current trends in the market as well as credible indications borne out of the CIC’s experience. In addition to maintaining adequate rates for the program, Pinnacle has also been retained to perform the annual analysis of unpaid loss and expense reserves. The CIC’s annual reserve analysis includes a review of policies written, premium collected and claims incurred by the CIC at the close of each fiscal reporting period. Management relies on Pinnacle’s analyses to ensure the financial health of this strategic venture.
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.
September 19, 2021
NAMIC Annual Convention
September 21, 2021
SCCIA Executive Educational Conference