Joseph A. Herbers
Timothy C. Mosler
Derek W. Freihaut
Robert J. Walling III
Erich A. Brandt
Terrence D. Wright
Arthur R. Randolph II
The best thing about working with Pinnacle is their flexibility and their willingness to provide additional explanations or data quickly without having to redefine the contract.
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.
Manufacturers face liability exposure at every turn — premises and operations, product liability, workers compensation, property and commercial auto exposure and more. The importance and risk associated with these and other exposures vary greatly among different manufacturing operations, as location, industry, company size and internal risk management controls all influence risk.
Our focus is to quantify the expected ultimate costs of your claims liabilities to reflect what makes your risk unique. We consider the multitude of your real world operations exposure and circumstances to the maximum extent possible. Then, we measure the impact of techniques such as loss prevention, loss control, risk management, and safety programs essential to keeping costs in check. Our analysis may take the form of a reserve analysis to estimate proper accrual for prior years’ claims a funding study to estimate the expected costs for next year’s claims, or even designing or modifying your self-insurance program.
Of course, there are external influences on some costs for which you have little control. Our extensive experience with self-insured manufacturers of all sizes from many industries tells us which influences are not only manageable, but are controllable.
Whether you need to develop rates for manufacturers’ insurance products, review retrospectively rated workers compensation policies for manufacturing companies, identify ongoing loss reserve analyses for manufacturing captives and self-insurance programs or require other actuarial services related to manufacturing, Pinnacle has the depth of experience, empathetic customer service and superior communication you need to drive the best decisions for your business.
Our expertise with manufacturers includes:
January 2014 - Apex Discussion Series
Statements of Actuarial Opinion at Year-End 2013
Authored by Joseph A. Herbers.
Pinnacle Predictive Analytics Brochure
Applying Innovation to Drive Success
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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.
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.
Self Insured Loss Reserve Analysis
Pinnacle was approached by a major, national manufacturer to perform a loss reserve analysis of their retained workers compensation, auto liability, general liability and products liability loss exposures. The previous actuary worked for a large broker which the customer felt presented a conflict of interest. In addition, the actuary used industry benchmarks that the customer felt did not accurately represent their loss development behavior. Pinnacle worked with the customer to better understand their loss exposures, claims handling practices, and corporate risk management philosophy. We worked with the company to gather better internal data and refine the industry benchmarks to better reflect their third party administrator, industry focus and geographic mix. These refinements, and many others, led to a more accurate analysis of the company’s retained loss exposures, a reduced provision for unpaid claims on their balance sheet, and reduced collateral requirements from their fronting carrier.
At Pinnacle, we partner with you to explore whatever path it takes to find the answers you need.
March 25, 2019
CAS Ratemaking, Product and Modeling (RPM) Seminar
April 08, 2019
CSIA Annual Meeting