Services

Insurers

Pinnacle understands the unique requirements of insurers and the challenging business and market environments they operate in. To meet these challenges and chart a path to success, you need a strategic partner that can focus on actuarial issues such as pricing and reserving while also keeping you apprised of the latest innovations in rating and underwriting.

Whether you need to develop an enterprise risk management program, help in identifying best practices for your industry or expert insight and analysis for a wide range of projects, our team of experts are focused on doing whatever it takes to exceed your expectations, time and time again. Pinnacle has helped dozens of insurers with projects from state-of-the-art rating plans to underwriting scorecards, from more refined rating territories to by-peril rating for homeowners. We have deep experience in both personal and commercial lines and have worked with small, medium and large insurers. We also do special projects in a variety of areas such as retention studies, mergers/acquisitions, deciding whether to enter or withdraw from certain lines, and filing assistance.

We also perform analysis of the amount of risk transfer in companies reinsurance contracts necessary for documenting the risk transfer file. As well, we routinely perform second opinions on the indicated unpaid claim liabilities for companies that may have concerns about the reasonableness of the loss and loss expense reserve projections by their current Appointed Actuary.

Our industry knowledge includes:

  • Commercial Auto
  • Commercial Multiple Peril
  • Commercial Property
  • General and Products Liability
  • Homeowners
  • Medical Professional Liability
  • Non-Medical Professional Liability (e.g., Lawyers, Accountants, Architects)
  • Personal Auto
  • Specialty coverages
  • Pollution
  • TRIA
  • Workers Compensation

Publications and Media

Case Studies

Asbestos Liabilities
More »

Asbestos Liabilities

In 2009, Pinnacle provided expert testimony about the evolution of insurance industry asbestos liabilities in an arbitration hearing among several insurance companies and a pool manager. This assignment drew on our knowledge of the history of insurance industry asbestos liabilities, e.g., the evolution of the legal aspects surrounding coverage determinations, the interplay of primary, excess and reinsurance contracts, the history of failed attempts to control the problem and the impact of bankruptcies among other factors. The assignment also drew on our mass tort / latent liability reserving expertise.

Reinsurance Loss Reserving
More »

Reinsurance Loss Reserving

Pinnacle provides a reinsurance reserving analysis to an offshore reinsurer, which includes the year-end Statement of Actuarial Opinion (SAO) to fulfill the offshore regulatory authority’s requirements. We began with quarterly reviews to gather and review all information on newly written reinsurance contracts, including a review of the new contracts to determine unique coverage terms and underlying exposures. Pinnacle also discusses with the company any important events in the prior quarter that may have affected reserves, such as major catastrophes, new major claims, whether individual contracts have paid their limit, and/or any new treaty commutations. Pinnacle’s review provides the company with the quarterly reserve requirements and the necessary SAO for the year end financial reporting.

U S Domestic Statement of Actuarial Opinion
More »

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. 

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