Principal and Consulting Actuary
Pinnacle’s Clients Say It Best
May 15, 2018
A lot of Consultants talk about client service. Pinnacle delivers it.
Feb 4, 2016
Communication is Key to Successful Collateral Negotiations
Feb 3, 2015
See all »
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 been in the property/casualty
insurance industry since 2002.
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.
He currently serves as vice chair on the AAA Committee on Property-Liability
Financial Reporting (COPLFR).
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
November 2019 APEX
State of the Florida Homeowners Market
Authored by Derek W. Freihaut.
Expected Adverse Deviation as a Measure of Risk Distribution
EAD as a Measure of Risk Distribution - *Sign in required to view*
Authored by Derek W. Freihaut and Christina L. Negley and Robert J. Walling III.
See More »
Medical Malpractice Damage Caps
A state insurance regulator asked Pinnacle to determine the potential impact of several proposed tort reforms, including a change to non-economic damage caps for medical professional liability claims. Pinnacle worked with medical society to identify the most appropriate claims databases for assessing the potential legislative change. 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 many cases, the specific reform’s effect, for example “I’m Sorry” legislation, was very difficult to isolate. Through this industry analysis, we identified differences well beyond a simple loss limitation to provide a more complete review of potential environmental changes that could be expected in the state.
This comprehensive analysis helped our client identify the effect of various legislative options, which empowered them to be a strong voice in the legislative debate and to influence policymaking in the state.
Pinnacle was asked by a large self-insured regional transportation authority to assess the impact of increasing their self-insured retentions for both workers compensation and automobile liability. We developed a stochastic simulation analysis, based on the program’s historical claims experience and industry benchmarks, that examined not only the increase in expected losses but the program’s additional potential loss variability. Finally, we discussed with the customer the relationship between their current capital position, as well as the current reinsurance market, to ensure the retention they selected for their program was appropriate for them. The authority ultimately increased their retentions, put some of their excess capital to work, and realized substantial savings in their reinsurance costs.
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.
July 23, 2020
July APEX Webinar -
Causes of Recent Adverse Development