Robert J. Walling III
Derek W. Freihaut
Joseph A. Herbers
Timothy C. Mosler
Erich A. Brandt
Aaron N. Hillebrandt
always quick to respond to inquiries
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.
Manufacturers face liability exposure at every turn — premises and operations, product liability, workers compensation, property and commercial auto exposure and more. The importance and risk associated with these and other exposures vary greatly among different manufacturing operations, as location, industry, company size and internal risk management controls all influence risk.
Our focus is to quantify the expected ultimate costs of your claims liabilities to reflect what makes your risk unique. We consider the multitude of your real world operations exposure and circumstances to the maximum extent possible. Then, we measure the impact of techniques such as loss prevention, loss control, risk management, and safety programs essential to keeping costs in check. Our analysis may take the form of a reserve analysis to estimate proper accrual for prior years’ claims a funding study to estimate the expected costs for next year’s claims, or even designing or modifying your self-insurance program.
Of course, there are external influences on some costs for which you have little control. Our extensive experience with self-insured manufacturers of all sizes from many industries tells us which influences are not only manageable, but are controllable.
Whether you need to develop rates for manufacturers’ insurance products, review retrospectively rated workers compensation policies for manufacturing companies, identify ongoing loss reserve analyses for manufacturing captives and self-insurance programs or require other actuarial services related to manufacturing, Pinnacle has the depth of experience, empathetic customer service and superior communication you need to drive the best decisions for your business.
Our expertise with manufacturers includes:
Pinnacle Captive and Alternative Markets Brochure
Pinnacle has a dedicated staff of consultants and actuarial analysts focused on serving the alternative markets.
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Empathetic Customer Service, Superior Communication, Expertise, Better Business Decisions
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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.
Pinnacle serves many of the largest group captives in the world, many of them domiciled in the Cayman Islands. These reserve analyses are typically produced twice a year and serve multiple purposes. First, they provide a range of reasonable estimates which management uses to determine their best estimate of ultimate losses and unpaid claims liabilities. Second, these reserve estimates can then be allocated to individual members to determine the outstanding liabilities and potential future assessments, if any. Finally, the allocated ultimate losses become the basis for renewal pricing estimates for each member. Pinnacle’s approach to estimating and allocating reserves in group captives is unique in the industry and sets our alternative practice apart with its efficiency and accuracy.
Pinnacle was approached by an aircraft manufacturer to provide recommended funding for various aviation and liability coverages. Pinnacle’s initial steps included discussing coverages to be provided and what data was available to complete the funding study. The captive was a start-up with no loss information on which to determine appropriate funding levels. Pinnacle was able to determine that the National Transportation Safety Board (NTSB) had a database of aircraft incidents that recorded both the manufacturer and model of the aircraft involved in the incident. Since the manufacturer was able to provide the number of units produced, Pinnacle was able to determine the frequency and severity of the incidents and project ultimate funding levels. The captive is currently operational after receiving regulatory approval.
At Pinnacle, we partner with you to explore whatever path it takes to find the answers you need.
April 15, 2021
April APEX Webinar -
Warranties, Guarantees and Actuaries: Adding Value with a Captive