Accountants / Auditors

They kept in touch on possible issues, timing, etc.

— Tienkie Venter
BDO

Services

Accountants/Auditors

Whether you are an accountant or auditor representing insurance companies, captive insurers, reinsurers, government or self-insurance entities, Pinnacle offers a wide range of audit services to meet your needs.

We understand the importance of an independent determination of the appropriateness and actuarial soundness of the data, assumptions and methodologies underlying the accrual for unpaid claims liabilities. That’s why, we focus on your needs and the needs of your client with every engagement, and work to ensure your customers’ financial statements accurately reflect their financial condition.

Our expertise in providing audit support includes all forms of insurance entities, both within and outside the traditional market. We are regularly called on to provide audit support for a wide variety of insurance, alternative markets and self insurance operations both on and offshore. To that end, we are very familiar with the financial reporting requirements of GAAP, SAP, IFRS and GASB as they relate to insurance entities.

We commonly perform reviews of another actuary’s work product to determine whether it adheres to relevant professional standards, including the Actuarial Standards of Practice (ASOP) from the Actuarial Standards Board (ASB). Specifically, our review of a the work product computing accruals for loss and loss adjustment expense reserves comports with ASOP 43: "Property / Casualty Unpaid Claim Estimates."

For reinsurance contracts, we are recognized experts in risk transfer evaluations. Our review of risk transfer in reinsurance contracts is consistent with both the Statement of Statutory Principles No. 62, “Property and Casualty Reinsurance” and the Financial Accounting Board’s Statement No. 113, “Accounting and Reporting for Reinsurance of Short-Duration and Long-Duration Contracts.”

Our industry experience includes:

  • Independent actuarial analyses in support of audit opinions of insurance companies, risk retention groups and captives
  • Peer reviews of actuarial reports and statements of actuarial opinion of other actuaries to ensure the data, methods, and assumptions are reasonable and appropriate and to confirm that all applicable actuarial standards were followed.
  • Risk transfer analyses to evaluate reinsurance contracts and compare them to applicable accounting and regulatory standards
  • Independent actuarial analysis of retained property–casualty loss exposures of large self insureds in support of their booked liabilities for unpaid claims obligations

Case Studies

Audit Support & Risk Transfer
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.

Start a Conversation

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

Learn More


From the Blog

In the news