Self Insurance and Captives
A preliminary study can indicate areas of cost savings and show alternatives such as self-insurance and captive plans which can provide significant dollar savings. Savings can be realized by using the investment income earned on loss reserves to reduce premiums and by eliminating much of the insurance company’s overhead costs. Coverage can be expanded beyond what may be available in the standard market.
We have been instrumental in creating many self-insurance type programs, including those for hospitals and other self-insurance trusts, loss pools, and captive insurance companies. We can help private businesses, associations and municipalities establish cost-effective self-insurance programs through analysis of their own experience and claim and exposure profiles.
Dynamic Financial Modeling
We can develop reinsurance and excess programs specifically geared to the individual client’s own underwriting philosophy and risk tolerance levels. Detailed limit, deductible, and retention analyses are available to evaluate insurance risks.
Ratemaking for All Lines
This includes the formal design of programs, rate-making schedules and underwriting guidelines; and rating plans including rate filings, formal reserve reports, and related analyses. We examine the loss experience of a client and use it to the extent of its actuarial credibility in determining claim frequency and severity trends. We calculate rates after we measure the cost of a client’s product.
Our ratemaking services are available for all lines of insurance, specifically; professional, general and automobile liability; workers compensation; commercial multi-peril; and homeowners and other property lines. We have extensive knowledge of medical malpractice and workers compensation.
Loss Reserve Studies and Opinions
“The past is going to repeat itself in the future if and only if nothing has changed”
What can change?
- Claim Reserve Adequacy. We need to ensure reserves on known claims are keeping pace with insurance inflation.
- Claim Reporting Rates. As incidents begin to be reported faster, the IBNR pattern begins to change.
- Claim Settlement Rates. If the payout pattern becomes more protracted, more reserves may need to be established.
- Trends in Claim Frequency and Severity. These are the two components of insurance inflation. They should be monitored over time and may need adjustment for changes in the underlying business.
Expert Witness Testimony
Members of our actuarial team testified as expert witnesses in depositions, rate hearings, arbitrations, and trials. SGRisk reports advocated client positions in legal disputes.
Topics included:
- Consequences of experience rating calculations
- Differences in the evaluation of workers compensation and other lines of business costs
- Disagreements arising from claim estimates and claims handling
- Assessments of legislative insurance reform bills
- Interpretation of agent commission arrangements with alternative evaluations of IBNR
Actuarial Peer Reviews
We have performed many reviews of work done by other actuaries, as requested by state regulators. We may serve as an independent source for a company or firm looking to get a second opinion on reserve levels. This also may extend to working with agents or brokers to offer our opinion on the claims profile of a book of business being offered in the market.