We tailor our analysis of indicated reserves to your particular situation. Our loss reserve analyses are used to support statements of actuarial opinion (SAOs), audit opinions, financial examinations, insurance company liquidations and rehabilitations, and as expert opinions in lawsuits. We rely on a broad array of traditional actuarial methods to develop reasonable estimates of unpaid claims liabilities. The results of such a study can be stated as a point estimate, a reasonable range of outcomes or a statistical distribution of all possible outcomes. Many factors influence the analysis of indicated reserves, including internal components such as safety programs, loss control efforts or management changes.
There are external influences as well — regulatory/judicial climate, the economy or weather patterns. Our consultants take considerable time and effort to understand the unique climate in which your company operates, before customizing our analysis to include the real world influences likely to influence the true accrual for unpaid claims liabilities. We also have significant expertise with insurer liquidators and rehabilitators.
Our experience with property/casualty insurance programs is both broad and deep, with no two programs alike. From financial analysis of companies and their management to expert witness testimony regarding our findings and recommendations, you can rely on our support.
Loss Reserving Services
Audit SupportPinnacle consultants deal with auditors daily, assisting them in serving their customers and evaluating the work products of other actuaries.
Collateral NegotiationsPinnacle provides loss reserve analyses and other diagnostics in support of collateral negotiations associated with deductible and/or self-insured retentions.
BenchmarkingPinnacle 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.
Diagnostic TestsAssessing 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.
DiscountingManagement 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.