Principal and Consulting Actuary
Captive Formation: An Actuary's Point of View
May 13, 2021
Pinnacle’s Clients Say It Best
May 15, 2018
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Derek Freihaut is a principal and consulting actuary with Pinnacle
Actuarial Resources, 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 been in the property/casualty insurance industry
Derek 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.
He currently serves as chair on the American Academy of Actuaries (AAA)
Committee on Property-Liability Financial Reporting (COPLFR).
Prior to joining Pinnacle, Derek 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
January APEX Webinar
Statements of Actuarial Opinion (SAOs) at Year-End 2021
Authored by Derek W. Freihaut and Aaron N. Hillebrandt.
November APEX Webinar
State of the Florida Homeowners Market
Authored by Derek W. Freihaut and Arthur R. Randolph II.
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Captive Dividend Assessment
An onshore, single parent captive was concerned with the amount of retained earnings and wanted to establish a policy for the minimum capital for the program to trigger dividend distributions. Pinnacle compared the program’s capitalization to a wide variety of industry standards for similar programs from rating agencies, regulators, and other sources. The results of this analysis lead to a recommended board policy regarding a minimum capital threshold for dividend distributions and ultimately to a significant dividend being declared to the parent company.
Pinnacle was retained by an insurance company specializing in catastrophic risk to identify and test alternative sources of risk financing capacity including traditional reinsurance and catastrophe bonds. In order to complete the project, Pinnacle designed a dynamic financial model to determine the cost/benefit of alternate risk financing strategies.
Rate Indications / Filings
A regional carrier came to Pinnacle wanting to implement an insurance score program along with rate indications for home, auto and farm. Pinnacle developed rate indications for each line, and developed an underwriting scorecard rating approach using insurance score as a critical component. The combination of implementing appropriate rates and the new rating plan enabled this company to turn their business around, become profitable and rebuild their surplus position.
At Pinnacle, we partner with you to explore whatever path it takes to find the answers you need.
August 18, 2022
August APEX Webinar -
Perspectives on Peer Review