Self-Insureds

Typical Services Reserve Analyses Have sufficient funds been set aside to settle all outstanding claims as well as claims which have not yet been reported, but which will arise from incidents that have already occurred? Our approach considers the credibilty of the entity’s own claims development experience in projecting ultimate losses, while incorporating industry factors from our database where necessary. Funding Studies At what rate should a self-insured entity accrue for losses from claims occurring during the current and next fiscal year? Our analysis provides the answer at several confidence levels, as well as a fund position analysis that amortizes any shortfall or excess into the rate over a selected number of fiscal years. Cost Allocation Studies We can assist in developing credibility weighted experience modification factors to appropriately charge various departments according to the degree of claims risk they present. Self-Insurance and Risk Retention Group Feasibility Studies Given today’s hardening insurance market, many public entities are considering self-insuring. Our firm will analyze factors such as claims variability, payout rates, credibility, and available funds in making a recommendation as to whether the decision to self-insure is advisable. Analysis and Ranking of Insuring Options Many entities are faced with not one, but several varying insurance options which come with choices of retentions, limits, corridors, retrospective rating, and other factors. Our firm is experienced at providing a present value analysis of the various options given an entity’s risk profile. Analysis of the Insure/Self-Insure Option Given a rate quote, does it make more sense to purchase insurance or to self-insure? Our analysis will consider an entity’s risk profile, claims variability, and available funds in making this decision.