Actuarial Consultants



RESERVE ANALYSES - Estimating the required reserves or outstanding losses for financial statement purposes. The estimates include a provision for the subsequent development of known claims as well as claims incurred but not yet reported. Reserve analyses are prepared for financial statement reporting, Annual Statement preparation, reserve certifications, and analysis of collateral requirements.

HISTORICAL PROFITABILITY ANALYSES - Included with most reserve studies, this analysis reviews the underwriting results by policy period and determines the funds available for dividends by policy period. This analysis also identifies the cause of changes in profitability whether due to changes in premium, expenses, losses, or a combination of the three.

LOSS FORECASTS - Estimated ultimate incurred losses can be forecasted for the current and future policy periods based on the client's unique historical losses and exposure. Losses can be forecasted by line of business and division as needed. Losses can be projected at several per occurrence retentions. This analysis assists in budgeting, evaluating excess insurance quotes, and is the basis of the premium analysis.

PREMIUM ANALYSES - Prior to renewal, the adequacy of the current rate structure can be evaluated. Based on the client's unique experience, losses and expenses can be forecasted. It is important that the rate structure be adequate to fully cover expected losses and expenses, yet be competitive.

LOSS COST MULTIPLIERS - Based on the results of the premium analysis, the indicated loss cost multiplier can be calculated and the filing prepared for regulatory officials.

RETENTION ANALYSES - This analysis evaluates whether or not it is advantageous to increase (or decrease) one’s retention by comparing the expected increase in retained losses to the premium saved by increasing the retention.

DIVIDEND PROGRAMS - BYNAC can assist in designing a dividend plan such that excess funds from underwriting may be safely returned to members. Dividends can be returned based on experience or premium and to all or active members subject to regulation. The advantages and disadvantages of each will be presented such that the management will be aware of the ramifications prior to implementation.

LOSS PORTFOLIO TRANSFER (LPT) QUOTE EVALUATIONS - The financial impact of a loss portfolio quote can be evaluated by comparing the estimated required reserves transferred to the price of the LPT. This evaluation is important as the transaction has an immediate impact on the surplus.

CASH FLOW ANALYSES - The payout of the projected losses can be forecasted to estimate the investment income expected to be earned on the losses before they are paid as well as to analyze cash flow incurred and paid loss retrospectively-rated programs.

AGGREGATE LOSS PROBABILITY ANALYSES - This analysis defines the potential variability of the estimated required reserves and projected losses in terms of confidence levels.