Self Insureds

Pinnacle did an excellent job, both crafting the report, and presenting the material. We welcome the opportunity to work with them again, and recommend them to others without reservation.

— National Healthcare Association


Self Insureds

Self-insurance programs, which allow companies to pay some portion of their insurable loss exposures, come in all shapes, sizes and types. Multinational corporations, single state operations, large deductible and retrospectively rated policies, risk retention groups (RRGs), and captives — including 831(b)s, single parent captives, segregated cells, and group captives — all play critical roles.

As nationally-respected experts in alternative markets, Pinnacle provides a full range of actuarial services to a wide variety of self-insureds, including traditional loss reserve analysis for exposure within deductibles or self-insured retentions. We can compare alternate program structures, analyze retention levels and develop feasibility study documents, along with a wide range of other services.

Our expertise comes from having a team of experienced consultants with deep understanding of the challenges self insureds face, but also with the local knowledge unique to individual market segments, such as:

  • General liability for contractors 
  • Medical professional liability for physician groups and hospitals 
  • Workers compensation for temporary staffing firms 
  • Law enforcement liability for public entity pools 
  • Commercial auto liability for trucking companies, bus companies and taxicabs

As well, we are well versed in the intricacies of mechanisms for alternative markets structures, including:

  • Large deductible policies 
  • Retrospectively rated policies 
  • Single parent captives 
  • 831(b) captives 
  • Group captives 
  • Agency captives 
  • Association captives 
  • MGA-controlled programs 
  • Risk retention groups (RRGs)

Case Studies

Cayman Captive
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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.

Reinsurance Price Optimization
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Reinsurance Price Optimization

Pinnacle was approached by an insurance company to provide an independent review of their reinsurance program. The first step was to review historic ceded premiums and losses by treaty layer to determine the overall reinsurer profitability. Pinnacle then independently priced the existing reinsurance program to benchmark the current market pricing. Finally, Pinnacle provided a cost benefit analysis to help the client determine the optimal retention levels for its insurance program. With this information in hand and our support, our client was able to negotiate better terms for their reinsurance program.

Risk Management Assessment
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Risk Management Assessment

Pinnacle was asked by a state department of corrections to provide a comprehensive, independent review of the adequacy of their property and casualty insurance plan. The independent insurance plan review was necessary for compliance purposes with state insurance regulators. The facility had even stricter self-imposed standards for their insurance plan. It was Pinnacle’s job to review the guidelines for reasonableness and appropriateness as part of an overall risk management strategy. Pinnacle reviewed and adhered to the state code as well as the additional standards provided by the facility. Moving through each line of insurance coverage, Pinnacle offered recommendations and approval notations. The result was an increased level of risk control for the facility, and subsequently led to a follow up review by Pinnacle at the next required consultation.

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