Principal and Consulting Actuary
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A lot of Consultants talk about client service. Pinnacle delivers it.
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Derek Freihaut is a Principal and Consulting Actuary with Pinnacle
Actuarial Resources, Inc. in the Bloomington, Illinois office. He holds a
Bachelor’s Degree in Mathematics and Economics from Rose-Hulman Institute of
Technology in Terre Haute, Indiana. He has been in the property/casualty
insurance industry since 2002.
Mr. Freihaut has considerable experience in
assignments involving loss reserving, funding studies, loss cost projections, captive
feasibility studies, risk transfer analyses, and personal and commercial lines ratemaking.
He currently serves as vice chair on the AAA Committee on Property-Liability
Financial Reporting (COPLFR).
Prior to joining Pinnacle, Mr. Freihaut was
employed at a large insurance company where his responsibilities included
personal and commercial lines pricing. His pricing duties included private
passenger and commercial auto, commercial multi-peril, and rental program lines
November 2019 APEX
State of the Florida Homeowners Market
Authored by Derek W. Freihaut.
Expected Adverse Deviation as a Measure of Risk Distribution
EAD as a Measure of Risk Distribution - *Sign in required to view*
Authored by Derek W. Freihaut and Robert J. Walling III.
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Pinnacle was retained by an insurance company specializing in catastrophic risk to identify and test alternative sources of risk financing capacity including traditional reinsurance and catastrophe bonds. In order to complete the project, Pinnacle designed a dynamic financial model to determine the cost/benefit of alternate risk financing strategies.
Risk Management Assessment
Pinnacle was asked by a state department of corrections to provide a comprehensive, independent review of the adequacy of their property and casualty insurance plan. The independent insurance plan review was necessary for compliance purposes with state insurance regulators. The facility had even stricter self-imposed standards for their insurance plan. It was Pinnacle’s job to review the guidelines for reasonableness and appropriateness as part of an overall risk management strategy. Pinnacle reviewed and adhered to the state code as well as the additional standards provided by the facility. Moving through each line of insurance coverage, Pinnacle offered recommendations and approval notations. The result was an increased level of risk control for the facility, and subsequently led to a follow up review by Pinnacle at the next required consultation.
U S Domestic Statement of Actuarial Opinion
Domestic U.S. property/casualty insurers and risk retention groups are required to file an Annual Statement with state regulators each year by March 1. Part of that filing includes the submission of a formal Statement of Actuarial Opinion (SAO) by a qualified Appointed Actuary as to the reasonableness of held loss and loss adjustment expense reserves. The SAO must be one of five types:
In addition to the SAO, most jurisdictions require an Actuarial Opinion Summary (AOS) providing more detail on the Appointed Actuary’s specific findings by March 15. Lastly, a formal report narrative in support of the SAO and AOS is required to be available by May 1.
As the SAO is a compliance document, the primary audience is state regulators but the individual company must arrange for the service to be provided.
A recent SAO for one of our clients touched on many of the required disclosures:
At Pinnacle, we partner with you to explore whatever path it takes to find the answers you need.
February 13, 2020
Annual RIMS Educational Conference
February 20, 2020
February Apex Discussion Series -
How to Incorporate Simulated Data into Actuarial Research