Consulting Actuary

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John E. Wade

John Wade is a Consulting Actuary with Pinnacle Actuarial Resources, Inc., managing the Indianapolis, Indiana office and has been providing actuarial consulting services since 1994, after having been employed by two primary carriers from 1978 - 1994. His practice is concentrated in providing reserving, funding and pricing studies for a wide variety of clients, including insurance companies, trade organizations, public entities and regulators.

His skill set includes loss reserving and rating for most lines of business, liability assessment for various funds, hands-on interaction with regulators, and project management. Mr. Wade is an Associate of the Casualty Actuarial Society and a Member of the American Academy of Actuaries. He serves or has served on the Nominating Committee, the Casualty Loss Reserve Seminar Planning Committee (Vice Chairman 2016-Present), the University Liaison Program, the Committee on Professionalism Education and the Membership Advisory Panel Committee of the Casualty Actuarial Society, as well as the Emerging Issues Task Force of the Casualty Practice Council of the American Academy of Actuaries. Mr. Wade often speaks at industry events. He has actively mentored college actuarial students as well as young actuarial candidates already in the professional work force.

Publications and Media

December 2017 APEX Webinar
Actuarial Standards of Practice Update
Authored by Laura A. Maxwell and John E. Wade.

July 18 2017 APEX Discussion Series
ORSA: Has Anything Changed?
Authored by Laura A. Maxwell and John E. Wade.

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Case Studies

Competitive Analysis - Personal Lines

Competitive Analysis - Personal Lines

A strong commercial lines company wanted to expand their personal lines writings in the Midwest. They wanted to have a competitive analysis system to track their competitors’ rates and review along with their latest rate change indications. Pinnacle developed a competitive analysis engine showing their competitive position including color-coded maps for a market basket of representative risks.

Farmowners Product Development

Farmowners Product Development

Pinnacle was approached by a leading farmowners insurer to review their current farmowners program. Pinnacle conducted a comprehensive review of competitor's manuals to determine if any additional rate factors needed to be included our client’s current program. Based upon our review, Pinnacle made a number of suggestions including incorporating new rate factors and changing their rating algorithm to a scorecard approach that has been successful in many other lines of business. Pinnacle used its expertise in farmowners product development and cutting edge pricing techniques to improve our clients farmowners product.

U S Domestic Statement of Actuarial Opinion

U S Domestic Statement of Actuarial Opinion

Domestic U.S. property/casualty insurers and risk retention groups are required to file an Annual Statement with state regulators each year by March 1. Part of that filing includes the submission of a formal Statement of Actuarial Opinion (SAO) by a qualified Appointed Actuary as to the reasonableness of held loss and loss adjustment expense reserves. The SAO must be one of five types:

  • Reasonable
  • Inadequate/Deficient
  • Excessive/Redundant
  • Qualified
  • No Opinion

In addition to the SAO, most jurisdictions require an Actuarial Opinion Summary (AOS) providing more detail on the Appointed Actuary’s specific findings by March 15. Lastly, a formal report narrative in support of the SAO and AOS is required to be available by May 1.

As the SAO is a compliance document, the primary audience is state regulators but the individual company must arrange for the service to be provided.

A recent SAO for one of our clients touched on many of the required disclosures:

  1. The adequacy of held reserves on a net basis were below the low end of our range of reasonable reserves until we took into account anticipated salvage and subrogation recoveries.
  2. The unearned premium reserves for long duration contracts were substantial and we conducted a review to determine they were adequate
  3. The Company held material loss and loss adjustment expense reserves for pools and associations. In order avoid having to issue a Qualified Opinion, we separately computed indicated reserves for two of the pools/associations, and obtained an SAO from the Appointed Actuary for the National Workers Compensation Reinsurance Pool.
  4. Reinsurance recoveries were in doubt for certain carriers as balance were sometimes overdue by more than 90 days. After reviewing the reinsurers’ A. M. Best ratings, we made the required disclosures about reinsurance collectability. 

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