McGriff offers a wide variety of actuarial and alternative risk services to our clients. Historically, actuarial work has provided the foundation for critical financial decisions that confront insurance company executives. As non-insurance companies have assumed more of their own risks, the actuarial consulting discipline has expanded its applications to support their financial decisions as well. This new constituency in turn has presented numerous new and challenging problems for actuaries to address.
Our actuarial consulting services are outlined below, including the types of questions that are answered within each service offering.
- What is a reasonable estimate of the outstanding liabilities associated with my self-insured liabilities (a requirement often imposed by the auditors)?
- What is a reasonable estimate of the outstanding liabilities associated with my deductible program and underlying the letter of credit currently held by the insurer?
- What is a reasonable estimate of these liabilities in one particular state (a requirement often imposed by the state regulator)?
- What is a reasonable estimate of the future liabilities associated with my self-insured liabilities?
- What is a reasonable estimate of the future liabilities associated with my deductible program and underlying the letter of credit to be held by the insurer?
- How do these estimates compare to the pricing of comparable layers of risk in the insurance market?
- How do I allocate the cost of risk equitably among the various units within the company in order to encourage loss control, while also considering each unit’s ability to absorb risk?
- What are the trade-offs associated with various features of the cost allocation system—i.e. per claim limits, credibility parameters, exposure-based vs. loss-based?
Risk Retention Analysis
- What is the optimal retention for my insurance program on both a per-occurrence and an aggregate basis?
- Do the increased retentions reflect the increased cost of capital that must be maintained to handle the added volatility?
- Does the indicated retention level consider the financial strength and business circumstances of the client company?
- What are the costs and benefits of using a captive insurance company to fund my self-insured liabilities? Is it the best use of expense and capital?
- Does the cost-benefit comparison look different in the first few years, as compared to the later years?
- Can the same benefits be achieved by other means?
- What amount of variation is inherent in the self-insured liabilities? What is the likelihood of losses exceeding the indicated funding level?
- What are riskiest components in the enterprise risk profile? How are the various components correlated with one another within the enterprise risk profile?
If the company transfers current outstanding liabilities into the captive, is there sufficient variability in the liabilities to receive insurance accounting treatment?
- How can we model the behavior of commodities, foreign currencies, interest rates, equities, and other financial risks? Do these same models work for illiquid commodities, confluence of events, unique asset classes and other difficult-to-measure risks?
- Given the enterprise risk profile, what are the possible scenarios for the enterprise’s financial statements? Which risk elements are most influential in the results?
Benefits of McGriff’s Actuarial Services
There are five key reasons why you should consider using McGriff’s Actuarial Services.
- We provide accredited actuarial expertise.
- We provide innovative and experienced actuarial talent.
- Our team of professionals take time to help our clients understand their actuarial reports thereby providing greater insight as to why our estimates are reasonable compared to the exposure, data, and prior results.
- We offer our clients stability in our estimates to facilitate their financial planning.
- We provide high-quality actuarial services at a competitive cost.
Contact us and let us show you how we can assist you with your Actuarial needs.