Manufacturing

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:

  • Beverage brewers, distillers, bottlers and distributors
  • Carpeting
  • Chemical processors and petroleum refiners
  • Clothing
  • Electronics
  • Electroplating
  • Food processors
  • Furniture
  • Hardware
  • Machinery
  • Metal refiners and fabricators
  • Paint
  • Plastics processors
  • Printers and publishers
  • Wood products

Manufacturing Services

  • Collateral Negotiations
    Pinnacle provides loss reserve analyses and other diagnostics in support of collateral negotiations associated with deductible and/or self-insured retentions.
  • Cost Allocations
    Pinnacle is experienced in 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.
  • Discounting
    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.
  • Dividend/Assessment Analysis
    Pinnacle has extensive experience helping insurers, captives and self-insurance programs determine appropriate dividend levels and actuarial sound allocation methods.
  • Alternative Risk Transfer Program Design
    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.

Manufacturing Solutions

Whether it's a captive insurance company, large deductible program, self-insured entity, public entity pool or syndicate, an alternative market entity is a risk retention program outside the traditional commercial property/casualty market. By virtue of the growth in the alternative markets for more than 30 years, the premium volume outside the mainstream markets is now greater than that written by the traditional markets.
Enterprise Risk Management (ERM) is a critical component of increasing your organization’s value by assessing, controlling, exploiting, financing and monitoring risk. The importance of ERM is self-evident due to the demands for information by rating agencies, regulators and financing institutions. While economic capital modeling is an essential element of ERM, it is only part of the process and not sufficient in and of itself.

Who We Serve in Manufacturing

Our expertise in providing audit support includes traditional insurance companies, reinsurers, risk retention groups and a wide variety of captive insurance companies. We are regularly called on to provide audit support for insurance, alternative markets and self-insurance operations.
Pinnacle has expertise in many lines of coverage, alternative risk transfer structures, regulatory jurisdictions and industry niches. Our team of experienced consultants understand the needs of captive managers, and bring local knowledge unique to individual market segments.
Whether you need to develop an enterprise risk management program, identify best practices for your industry or procure expert insight and analysis for a broad range of projects, our team of experts is focused on doing whatever it takes to exceed your expectations, time and time again.
Pinnacle provides a variety of services to insurance regulators. Services include financial exams including risk-focused examinations, rate filing reviews and model reviews. Pinnacle has also assisted regulators with captive applications reviews, training, and legislative costing.

Start a Conversation