Aaron N. Hillebrandt
Robert J. Walling III
Darcie R. Truttmann
Terrence D. Wright
Arthur R. Randolph II
Derek W. Freihaut
Erich A. Brandt
Legaré W. Gresham
Zachary T. Brogadir
Joseph A. Herbers
Timothy C. Mosler
Michael K. Chen
Laura A. Maxwell
Pinnacle does a great job on group captives and that's great information to pass on to clients.
Pinnacle helps alternative market risk owners, captive managers and service providers determine risk retentions that optimize the balance between the cost of risk transfer and loss volatility.
Pinnacle provides loss reserve analyses and other
diagnostics in support of collateral negotiations associated with deductible
and/or self-insured retentions.
Pinnacle is experienced developing cost allocation mechanisms
by member or department in the most equitable manner using elements such as –
exposure, geographic cost differences and actual loss experience.
Management 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.
Pinnacle has extensive experience helping insurers, captives, and self-insurance programs determine appropriate dividend levels and actuarial sound allocation methods.
As a captive manager, you need a trusted actuarial advisor who is not only technically competent but can also communicate in plain language while offering outstanding insight, analysis and service.
We offer a full range of actuarial services specific to the needs of captive managers. From traditional services, such as loss reserve and funding analyses for exposure within deductibles or self-insured retentions to comparing alternate program structures with retention levels to feasibility studies, we have the expertise necessary to help you drive better business decisions.
Pinnacle has expertise in a wide variety of lines of coverage, alternative risk transfer structures, regulatory jurisdictions and industry niches. Our expertise has been developed by our team of experienced consultants who understand the specific needs of captive managers, but also with the local knowledge unique to individual market segments.
As nationally-respected experts in alternative markets, we also offer 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 regularly assist clients to comparing alternate program structures, analyze retention levels and developing feasibility study documents. Regulatory authorities in jurisdictions around the world respect our quality work.
We understand the insurance challenges public entities face and we are equipped to help you meet them, regardless of your insurance program and service providers. We’re well versed on the Governmental Accounting Standards Board Statement No. 10, and understand the impact for state and local governmental entities, their public entity risk pools and other relevant accounting guidance.
Our commitment to captive managers goes beyond the basics to understanding the unique requirements of your specific industry, providing insight to a range of likely outcomes and providing you with the intelligence you need to succeed.
Issues & Answers: The Future of ERC Captives
Authored by Robert J. Walling III.
The Actuary’s Role in Captive Formation
Authored by Robert J. Walling III.
See More »
Audit Support & Risk Transfer
Pinnacle provides audit support for captive insurers to a major accounting/audit firm. The audit support typically includes a review of the actuarial report and supporting documents to determine if the actuarial report adheres to professional standards and provides a reasonable estimate of held reserves. As part of this support we interact with the actuaries who developed the report in order to answer any relevant questions. Another frequent element of audit support engagements is risk transfer analysis. Pinnacle has developed a state-of-the-art approach to risk transfer modeling; our publications and presentations at industry trade shows have been well received. Ultimately, Pinnacle produces a report with relevant comments and our conclusions that provide the necessary documentation for the auditing firm.
In an effort to attract and retain quality physicians, a large integrated healthcare system operating in the Midwest decided to create a physician’s professional liability insurance (PPLI) alternative to the commercial markets. After a comprehensive feasibility analysis, an offshore captive insurance company (CIC) was capitalized and formed. Pinnacle actuaries were engaged to assist in the feasibility analysis and implementation of this strategy. Pinnacle’s involvement began by assisting the captive manager to develop appropriate assumptions that were incorporated into the CIC’s proposed business plan and filed with regulators. Initially, Pinnacle performed a comprehensive analysis of the current PPLI market to develop base rates, rating factors and underwriting guidelines. On an annual basis, Pinnacle re-evaluates the base rates and rating factors and recommends adjustments to reflect current trends in the market as well as credible indications borne out of the CIC’s experience. In addition to maintaining adequate rates for the program, Pinnacle has also been retained to perform the annual analysis of unpaid loss and expense reserves. The CIC’s annual reserve analysis includes a review of policies written, premium collected and claims incurred by the CIC at the close of each fiscal reporting period. Management relies on Pinnacle’s analyses to ensure the financial health of this strategic venture.
Self Insured Dividend / Assessment Analysis
A large group self insurance program 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 the development of an actuarially sound dividend distribution plan.
At Pinnacle, we partner with you to explore whatever path it takes to find the answers you need.
October 26, 2017
October Apex Discussion Series -
Captive Insurance Hot Topics
November 02, 2017
Florida Chamber of Commerce Insurance Summit
Full Site Map
Pinnacle is an actuarial firm focused on property/casualty insurance, including alternative markets, captives, self insureds, enterprise risk management, predictive analytics, commercial lines and more. We serve trucking, insurance, health care, medical professional liability, reinsurance, workers compensation, public entities and other companies and concerns.
Our services include expert witness, loss reserving, litigation support, pricing, ratemaking, rate filing, statements of actuarial opinion, feasibility studies, capital modeling and other actuarial services and products.
Phone: (309) 807-2300
Fax: (309) 807-2301
Copyright © 2003 - 2017 Pinnacle Actuarial Resources, Inc.