We have been providing loss and loss adjustment expense reserve (L&LAE) opinions for Property & Casualty insurance companies, Title underwriters, self-funded casualty insurance pools and other clients since 1985. Although statements of actuarial opinion are typically prepared to facilitate compliance with National Association of Insurance Commissioners (NAIC) annual statement instructions or other applicable regulatory requirements, Demotech's L&LAE opinions are also available for:
While actuaries are comfortable with L&LAE reviews when representative historical operating results are readily available, representing stability and consistency of operation, our experience and expertise permits us to be comfortable incorporating micro and macro economic factors in addition to qualitative and quantitative components, i.e., claims department or underwriting operational changes.
Within the process of reviewing loss and loss adjustment expense reserves, our services also include:
Using a variety of actuarially sound techniques, we familiarize ourselves with claim procedures and processes underlying the booked loss and loss adjustment expense reserve. This is critical when claim procedures and practices have been revised, rendering historical data less useful than it might have been.
After our review, we may suggest modifications to improve claim practices, procedures or internal processes utilized to establish the reserve for Incurred But Not Reported (IBNR) losses. We can also summarize how changes in claim practices and procedures may impact the interpretation of historical data.