Joseph A. Herbers
Robert J. Walling III
Aaron N. Hillebrandt
Erick E. Mortenson
Timothy C. Mosler
Arthur R. Randolph II
Our actuarial team was very helpful in identifying problem areas and providing alternative solutions.
Pinnacle has consultants who are experienced as expert witnesses in arbitrations and also ARIAS-certified arbitrators.
Pinnacle can assist you in controlling your property
catastrophe exposure by determining the impact of policy changes, including
deductibles, or reviewing geographic areas where exposures are driving your
Pinnacle provides loss reserve analyses and other
diagnostics in support of collateral negotiations associated with deductible
and/or self-insured retentions.
Pinnacle represents the interests of both buyers and sellers of blocks of business providing independent evaluations of a program’s indicated unpaid claims liabilities often reflecting provisions for the time value of money (i.e., discounting) and uncertainty (risk margins).
helps a wide variety of customers establish a reasonable accrual for unpaid
loss and loss adjustment expense obligations.
A reinsurance transaction involves three parties—a buyer, a seller and their intermediaries. Pinnacle provides actuarial and risk management services to all three sectors and outside third parties such as auditors, regulators and rating agencies.
For buyers hoping to optimize the value of a coverage, Pinnacle can analyze your organization’s risk retention levels, comparing costs between coverage options and evaluating the risk being transferred before and after the transaction.
For sellers seeking a reasonable return on the assumption of risk, our reinsurance pricing model, reserve analysis and capital allocation modeling provides invaluable support to your underwriters. And as you strive to maintain a high quality and profitable book of business, our experienced consultants can provide the underwriting, product management and auditing support you need.
If you’re an intermediary who wants your clients to be comfortable with the value of their transaction, we can independently review the relative value of competing options. We’ll also conduct risk transfer analyses — an essential feature in documenting the effectiveness of individual reinsurance contracts and a service we routinely provide for a variety of audiences, including auditors.
Pinnacle consultants have a tremendous breadth of reinsurance experience. From reinsurance pricing and reserving, to reinsurance underwriting and catastrophe modeling applications, we always strive to learn about your unique business operations and apply our expertise to provide solutions you need.
Pinnacle serves a wide range of reinsurance customers, including:
Primary Companies – We can help primary companies, including insurance companies, alternative market insurers and self-insured organizations, to optimize reinsurance purchases, evaluate retained risk, review catastrophe exposure and develop reinsurance underwriting submissions.
Reinsurance Companies – We provide loss reserving, latent mass tort loss reserving, reinsurance underwriting and audit support and reinsurance pricing for a wide range of reinsurance companies.
Brokers –We assist brokers by helping their clients optimize reinsurance purchases, evaluate retained risk, review catastrophe exposure and develop their reinsurance underwriting submissions.
Auditors – Pinnacle provides a complete suite of actuarial support required to complete an audit, such as reviewing a company’s held reserves, providing a second opinion on the held reserves or assisting in the determination of risk transfer in reinsurance contracts.
Regulators – We offer the actuarial support required to complete a regulatory review of an insurance company, including reviewing a company’s held reserves, providing a second opinion on the held reserves, or assisting in the determination of risk transfer in reinsurance contracts.
Government Funds –We can assist you in understanding your potential assessments for residual market pools.
Domestic Companies – Pinnacle provides a number of Statements of Actuarial Opinion (SAO’s) for reinsurers and primary companies with significant assumed business. We can also assist companies in providing the necessary support to regulatory authorities required in collateral negotiations, commutations or loss portfolio transfers, and reinsurance risk transfer analyses.
Offshore Companies – With extensive experience with companies in a number of offshore locations, we are a designated “loss reserves specialist” in Bermuda for Bermuda clients and provide reinsurance reserve analysis for the Cayman and other Caribbean island based companies. Beyond our regular actuarial services, we can model capital requirements based upon the regulations of the local insurance authorities.
Property Lines – Our consultants have knowledge of the various perils impacting property exposures such as wind, wildland fires, terrorism or mold. Further, our experience includes a strong understanding of property coverages that increase losses, including business interruption and time elements exposures.
Casualty Lines – Our experience includes a number of significant casualty lines, including workers compensation, general liability, medical malpractice and other professional lines of business. We also have significant experience with specific exposures such as asbestos, environmental, construction defect and other latent mass torts.
Underwriting – Pinnacle consultants have deep and wide experience in various insurance functions, including reinsurance and primary company actuaries, underwriters and product mangers. We also provide support to primary companies in developing their reinsurance underwriting submission. We can also provide reinsurance underwriting audit support, which can include a review of ceding companies adherence to contract provisions or a review of data quality submitted to the reinsurer.
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A reinsurer wanted to compare technical treaty prices using varying capital allocation methodologies. A Pinnacle actuary assisted in the design of a model that used standard allocation methodologies, capital allocation based on marginal impacts to rating agency required capital, and recent ideas in capital consumption / utility theory. The result was a pricing model that highlighted the sensitivity of expected ROEs to the chosen capital allocation method and allowed underwriters to make more informed decisions.
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.
Pinnacle was asked by a large self-insured regional transportation authority to assess the impact of increasing their self-insured retentions for both workers compensation and automobile liability. We developed a stochastic simulation analysis, based on the program’s historical claims experience and industry benchmarks, that examined not only the increase in expected losses but the program’s additional potential loss variability. Finally, we discussed with the customer the relationship between their current capital position, as well as the current reinsurance market, to ensure the retention they selected for their program was appropriate for them. The authority ultimately increased their retentions, put some of their excess capital to work, and realized substantial savings in their reinsurance costs.
At Pinnacle, we partner with you to explore whatever path it takes to find the answers you need.
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