FCAS, MAAA, CSPA
Senior Consulting Actuary
Educational Opportunities Await at the 2016 CAS RPM Seminar
Mar 9, 2016
Usage Based Insurance Data: Highlights from the Lead Foot Report
Aug 17, 2015
Innovation Key to Ideal UBI Solution
Apr 17, 2015
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Gary Wang is a Senior Consulting Actuary with Pinnacle Actuarial Resources, Inc. in the Bloomington, Illinois office. He holds a Bachelor of Science degree in mathematics from the University of Illinois and a Master of Science degree in mathematics education from Northern Illinois University. He also has extensive graduate level coursework in Theoretical and Applied Mathematics from Northern Illinois University. He has over seventeen years of actuarial experience in the property/casualty insurance industry.
Mr. Wang currently serves the CAS as a member of the Ratemaking and Product Management Planning Committee.
Before joining Pinnacle, Mr. Wang was employed as a pricing actuary for three of the top ten insurance companies. His pricing experience includes standard homeowners rate indications, commercial auto rate indications, and reinsurance treaty pricing for both personal and commercial lines. In addition, he has experience in reserving analyses for commercial auto and market trend analyses for commercial auto and workers compensation.
At Pinnacle, Mr. Wang has worked extensively on the application of advanced statistical modeling techniques to the insurance process. His experience in predictive analytics applications include rating and underwriting plan design, homeowners by-peril analysis, auto vehicle characteristics analysis and scorecard development, and territory boundary development. Mr. Wang has made numerous presentations on topics relating to predictive modeling, ratemaking, and insurance credit‐based scoring.
February 2020 APEX
How to Incorporate Simulated Data into Actuarial Research
Authored by Gary C. Wang and Michael K. Chen.
February 2019 APEX Webinar
The Actuary’s Evolving Role in Today’s Dynamic Industry Landscape
Authored by Gary C. Wang and Michael K. Chen.
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Pinnacle was asked by a regional insurer to help build a customized financial model for use in strategic decision making and in determining economic capital needs. The model reflected current and potential underwriting operations. It also incorporated economic scenario generators, capital allocation, catastrophe model results, regulatory and rating agency metrics such as risk-based capital (RBC) and Best’s Capital Adequacy Ratings (BCAR), as well as loss reserve variability. The model was designed to be used to evaluate a variety of strategic decisions, particularly related to underwriting, reinsurance, macro investment allocation, and capital allocation decisions.
New Jersey Automobile No-Fault Impact Analyses
Save Choices for New Jersey Drivers (SCNJD), an ad-hoc coalition of insurers, trade and business associations asked Pinnacle to determine how proposed legislation would affect drivers.
The New Jersey Auto Cost Reduction Act eliminated the judicial requirement that permanent injuries that do not meet the other eligibility criteria for tort claims in no fault cases must have a “serious impact” on the claimant’s life. Pinnacle evaluated the affect of eliminating this requirement and determined the law would “significantly increase “losses eligible for tort recovery. Hence, Bodily Injury (BI) Liability and Uninsured/Underinsured Motorist Coverage (UM/UIM) costs and premiums would increase for drivers selecting the verbal threshold.
On June 14, 2005, two years after Pinnacle conducted its analysis, the New Jersey Supreme Court concluded does not imply a "serious impact" requirement for those seeking damages for non-economic losses (Octavio Serrano v. Jacqueline Serrano, et al. (A-99-03) and DiProspero v. Penn, et al., (A-66-03). As a result, injured claimants may seek recompense from the at-fault party for losses such as pain and suffering. SCNJD hired Pinnacle again to update the analysis based upon the later Insurance Research Council (IRC) data, which became available subsequent to the release of its 2003 report.
Territory / Summit Analysis
The insurer had not reviewed or adjusted their territorial boundaries in several years; and their current territories were not based upon an analysis of their underlying loss experience.
Pinnacle began with an evaluation of available insurer and external industry data at the ZIP code level as well as their current and future policy processing capabilities. After all of the experience data was adjusted to a common base level, we used our Summit® software product to smooth the data to develop an initial adjusted pure premium by ZIP code to reflect both experience in a ZIP code and in neighboring ZIP codes. The number of additional neighboring ZIP codes used was dependent upon attaining a sufficient exposure level.
The smoothed data was then clustered using Summit® on both a contiguous and non-contiguous basis. The insurer needed to decide whether to maintain relatively contiguous definitions or use more granular and theoretically accurate non-contiguous definitions. Using statistical measures, we identified and graphed optimal definition sets. Non-contiguous definitions were selected by the client. To minimize the number of territories with a limited geographic area or only a few ZIP codes, some manual combination of “outlying” ZIP codes with territories (clusters) with similar adjusted pure premiums was performed.
Finally, we assisted the insurer in developing the necessary filing support material to gain approval. The new program is generating new business in areas of historical profitability but previously less than average competiveness.
At Pinnacle, we partner with you to explore whatever path it takes to find the answers you need.
April 16, 2020
April Apex Discussion Series -
Cyber Insurance: What’s in Store for Captives