FCAS, MAAA
Principal and Consulting Actuary

Send email
(309) 807-2313

Download Bio
Download CV


Download vCard

Derek W. Freihaut

Derek Freihaut is a Principal and Consulting Actuary with Pinnacle Actuarial Resources, Inc. in the Bloomington, Illinois office. He holds a Bachelor’s Degree in Mathematics and Economics from Rose-Hulman Institute of Technology in Terre Haute, Indiana. He has over ten years of actuarial experience in the property/casualty insurance industry.

Mr. Freihaut is a Fellow of the Casualty Actuarial Society (CAS) and a Member of the American Academy of Actuaries. He currently serves on the AAA Committee on Property-Liability Financial Reporting (COPLFR).

Mr. Freihaut has considerable experience in assignments involving loss reserving, funding studies, loss cost projections, captive feasibility studies, risk transfer analyses, and personal and commercial lines ratemaking.

Prior to joining Pinnacle, Mr. Freihaut was employed at a large insurance company where his responsibilities included personal and commercial lines pricing. His pricing duties included private passenger and commercial auto, commercial multi-peril, and rental program lines of business.

Publications and Media

Issues & Answers: Risk Distribution

Authored by Derek W. Freihaut.

March 2018 APEX Webinar
Expected Adverse Development as a Measure of Risk Distribution
Authored by Derek W. Freihaut and Robert J. Walling III.

See More »

Case Studies

Capital Allocation

Capital Allocation

A reinsurer wanted to compare technical treaty prices using varying capital allocation methodologies. A Pinnacle actuary assisted in the design of a model that used standard allocation methodologies, capital allocation based on marginal impacts to rating agency required capital, and recent ideas in capital consumption / utility theory. The result was a pricing model that highlighted the sensitivity of expected ROEs to the chosen capital allocation method and allowed underwriters to make more informed decisions.

Cayman Captive

Cayman Captive

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.

Legislative / Regulatory Impacts

Legislative / Regulatory Impacts

A state medical society asked Pinnacle to evaluate the impact of a change in the state’s damage caps for non-economic damages for medical professional liability. Pinnacle worked with the medical society to identify the most appropriate claims databases to assess the legislation’s potential impact. 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 addition, we performed a thorough analysis of how the state compared to other states in terms of the availability and affordability of medical professional liability insurance coverage, insurer operating results for the line, and access to healthcare in the states. Through this industry analysis, we identified differences well beyond a simple loss limitation and provide a more complete review of potential environmental changes that could be expected in the state.

Start a Conversation

At Pinnacle, we partner with you to explore whatever path it takes to find the answers you need.

Learn More


In the news

From the Blog