Timothy C. Mosler
Darcie R. Truttmann
Derek W. Freihaut
Robert J. Walling III
Erich A. Brandt
Joseph A. Herbers
Delivered an excellent product and on time, even with additional information provided after the project was initiated.
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 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.
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.
As a staffing concern, there are any number of situations that can have an impact on your business. For example, prevailing economic conditions can affect liability forecasting. Payroll projections can be volatile for your company as a whole or regionally. Business can shift between different industries, such as from light-industrial to clerical.
Your marketing philosophy during times of economic distress also affects the levels of risk you may experience. Some companies are cognizant of risk factors with expansion and do so methodologically, without much change to their loss experience. Other entities may seek to expand their business and will take on riskier initiatives. It’s important to adjust forecasting methodology based on these philosophies.
Our clients are among the leaders of the staffing industry, and we’re experts in analyzing each program’s unique characteristics — from single parent captive liabilities to large self-insured retention liabilities. We blend information such as third party administrator, broker or an aggressive risk control program characteristics to customize expert solutions that address your specific challenges.
At Pinnacle, we build a model specific to your unique situation and provide further analysis to evaluate collateral, analyze company-level loss development, project future cash flow, recommend funding levels for future negotiations with insurance companies and more. When you partner with Pinnacle, you gain the leading edge expertise, superior communication, extraordinary customer service and insight you need to achieve your goals.
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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.
Staffing Self Insured Reserve Analysis
Pinnacle was retained by a group of staffing companies with large self-insured retentions for their workers compensation loss exposures to perform quarterly loss reserve analyses and annual funding studies. Pinnacle initially used customized benchmarks for the staffing as the basis for our analyses. However, it became apparent that the benchmarks were not reflective of the unique characteristics of this program. Pinnacle worked with the third party administrator (TPA) for the program to gather additional historical experience for the program, as well as consolidated experience for several similar programs administered by the TPA. Using the results of our analysis of the TPA’s previous experience for this program and others like it, we were able to develop benchmark loss development assumptions that tracked much more closely with the program’s actual loss emergence.
At Pinnacle, we partner with you to explore whatever path it takes to find the answers you need.
October 21, 2020
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