At Wakely Actuarial, we help insurance carriers develop strategies that fit their business needs. Our clients may be small or large. They may have heavy involvement with health insurance, or life insurance may be the flagship line of business. They may be interested in creating growth, or they may be concerned with using our services to cut costs and gain efficiencies with their actuarial needs. Here are a few ways that we create a tailored approach that meets the needs of our clients.
Our clients have ideas for new products. We welcome ideas, and we enjoy coming up with product designs that fit the client's needs. Product designs have evolved, and we remain an industry needed to help families and business owners guard against the risk of financial loss due to death, disability, and accidental injury. We work with ideas, work it into the product design, and provide pricing analysis. The clients offer suggestions for changes as we work, and once design is approved, we file for policy form approval with the states.
We have broad talent and extensive experience with reserving for many types of products. Every company is unique, and while regulations and accounting standards determine the minimum standards, a one-size-fits-all approach does not work for most companies. Mutual companies have different reporting needs than stock companies with stock traded on the U.S. stock market. Different lines of businesses require different modules for modeling assets and liabilities, and time expended to review the reserve methods and needs is rewarded by efficiencies in reporting.
Annual Statement Reporting
Insurance companies licensed in the U.S. are required to report reserves in accordance with the statutory accounting practices and procedures promulgated by the NAIC, with variations by states. This requires actuarial work, combined with actuarial education and experience. With our annual statement reporting, we are able to leverage the experience of our staff to produce accurate statement exhibits that satisfy the regulators, auditors, and client company staff. We could not succeed with this effort if we applied uniform approaches. Each company is special and requires unique solutions.
Reinsurers agree to accept a portion of the risks contracted by the insurer. The reinsurance agreement serves as a means of transferring risk, enabling more favorable underwriting or mortality experience. As a result of the reinsurance risk transfer, the reserves are transferred to the Reinsurer as well. This can easily reduce the surplus needs of the ceding company. Determining the financial benefits requires actuarial modeling, and what works for one company may not benefit another company. Establishing appropriate retention levels requires special attention to each clients’ needs.
As we develop relationships with our client companies, we serve to support the needs for special requests, such as analysis of financial balances requested by regulators and auditors or unique marketing support and accounting. These vary and are usually provided on an ad hoc basis. They require understanding the requirements and purpose. We strive to help insurance carriers with strategies that fit them and their requests.