Derek W. Freihaut
Arthur R. Randolph II
Timothy C. Mosler
Aaron N. Hillebrandt
Laura A. Maxwell
Joseph A. Herbers
The team was very responsive and the project was completed on time in a quality manner. Overall, very good client service.
Pinnacle consultants deal with auditors daily, assisting them in serving their customers and evaluating the work products of other actuaries.
Pinnacle strives to construct benchmarks for any analysis, whether ratemaking, loss reserving or some other use, as close as possible to replicating the nature of the underlying data being reviewed.
Assessing the reasonableness of indicated loss and loss adjustment expense reserves after the analysis is completed is an essential element of the loss reserve analysis. In particular, measures such as loss ratios, changes since the prior evaluation, implied claim frequencies and severities and costs per unit of exposure are a few of the diagnostic tests employed when considering the reasonableness of indicated reserves.
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.
can help insurers, captive and other self-insurance programs evaluate and
benchmark insurance program expenses, including fronting fees, captive
management costs, commissions, other acquisition and general expenses, taxes,
and loss adjustment expenses.
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:
December 2019 APEX
Three Perspectives on Peer Review
Authored by Erich A. Brandt and Darcie R. Truttmann.
Expected Adverse Deviation as a Measure of Risk Distribution
EAD as a Measure of Risk Distribution - *Sign in required to view*
Authored by Derek W. Freihaut and Robert J. Walling III.
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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.
At Pinnacle, we partner with you to explore whatever path it takes to find the answers you need.
July 13, 2021
July APEX Webinar -
Causes of Recent Adverse Development