Joseph A. Herbers
Timothy C. Mosler
Laura A. Maxwell
Ken J. Hawkins
Roosevelt C. Mosley Jr.
Dalesa M. Bady
Nicholas E. Alicea
Arthur R. Randolph II
Aaron N. Hillebrandt
Robert J. Walling III
Radost Roumenova Wenman
Gaétan R. Veilleux
Derek W. Freihaut
Christopher J. Schubert
(Pinnacle) has been greatly beneficial to us particularly in a time when there is pressure in being able to maintain Auto/Property profitability targets.
Pinnacle strives to construct benchmarks for any analysis, whether ratemaking, loss reserving or some other use, as close as possible to replicating the nature of the underlying data being reviewed.
Pinnacle has experience working with model output from all the major catastrophe modelers for hurricane, other wind, earthquake and fire, and making recommendations for rating plans, territory boundaries, catastrophe loads, rate filings, and reinsurance/risk financing structures.
Pinnacle helps insurers identify rating plan elements that can be more appropriately priced or added for additional risk segmentation.
Pinnacle has a powerful set of competitive analysis tools
that provide in-depth market analyses and enable comparison of premiums, rating factors and tiering plans, often with mapping and batch rating capabilities.
Pinnacle has strong experience identifying loss exposures and recognizing that differences exist between businesses. Upon classifying the various exposures, we can help establish a proper structure to minimize losses.
Pinnacle serves a wide variety of customers, including insurers, regulators, agents and industry associations, with industry-leading expertise for pricing and product management.
We support the insurance industry with sound actuarial advice using the most advanced techniques available anywhere. As pioneers in underwriting and pricing techniques, we apply new methods to analyze loss variables with a much higher degree of accuracy.
As well, we can provide the information and data files necessary to do everything from set up and manage your insurance operation to rate filings.
Whether you’re introducing a new program, modifying an existing program, or dealing with a regulatory matter, our experience in all aspects of property/casualty insurance pricing and product management can drive better decisions and help you achieve your goals. Our customers include insurance companies, state insurance departments, government insurers, industry associations and more.
Pinnacle’s experience in pricing and product management includes sectors such as:
August 2020 APEX Webinar
Flood Insurance – Past, Present and Future
April 2020 APEX
Cyber Insurance: What’s in Store for Captives
Authored by Nicholas Gurgone and Aaron N. Hillebrandt.
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Farmowners Product Development
Pinnacle was approached by a leading farmowners insurer to review their current farmowners program. Pinnacle conducted a comprehensive review of competitor's manuals to determine if any additional rate factors needed to be included our client’s current program. Based upon our review, Pinnacle made a number of suggestions including incorporating new rate factors and changing their rating algorithm to a scorecard approach that has been successful in many other lines of business. Pinnacle used its expertise in farmowners product development and cutting edge pricing techniques to improve our clients farmowners product.
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.
Territory / Summit Analysis
The insurer had not reviewed or adjusted their territorial boundaries in several years; and their current territories were not based upon an analysis of their underlying loss experience.
Pinnacle began with an evaluation of available insurer and external industry data at the ZIP code level as well as their current and future policy processing capabilities. After all of the experience data was adjusted to a common base level, we used our Summit® software product to smooth the data to develop an initial adjusted pure premium by ZIP code to reflect both experience in a ZIP code and in neighboring ZIP codes. The number of additional neighboring ZIP codes used was dependent upon attaining a sufficient exposure level.
The smoothed data was then clustered using Summit® on both a contiguous and non-contiguous basis. The insurer needed to decide whether to maintain relatively contiguous definitions or use more granular and theoretically accurate non-contiguous definitions. Using statistical measures, we identified and graphed optimal definition sets. Non-contiguous definitions were selected by the client. To minimize the number of territories with a limited geographic area or only a few ZIP codes, some manual combination of “outlying” ZIP codes with territories (clusters) with similar adjusted pure premiums was performed.
Finally, we assisted the insurer in developing the necessary filing support material to gain approval. The new program is generating new business in areas of historical profitability but previously less than average competiveness.
At Pinnacle, we partner with you to explore whatever path it takes to find the answers you need.
May 26, 2022
May APEX Webinar -
Inflation: Are Insurers Really Equipped to Handle It?