In the last quarter of 2013, SIGMA Actuarial Consulting Group invited a group of insurance brokers, risk management consultants, and risk management staff of self-funded concerns to participate in a survey regarding collateral. This survey was similar to the ones conducted by SIGMA in 2009 through 2012.
The goal of the survey was to assess, on a national basis, trends in collateral negotiations, exposures, reviews, arbitration, litigation, and other factors that SIGMA actuaries have been seeing with our own clients.
Summary of Results
Highlights of the 12 question survey, which received 67 respondents show:
- The percentage of respondents indicating that most of the parameters of the agreement were negotiated prior to the policy inception has continued to decrease since 2010. The percentage of respondents indicating that some of the parameters of the agreement were negotiated has continued to increase since 2010.
- In 2013 there was approximately a 12% increase in the respondents indicating they used actuarial consultation or analysis in support of collateral issues.
- Most of the respondents indicated that workers compensation was the primary risk related to their responses. Most respondents also indicated that workers compensation was the most difficult risk related to collateral issues.
Details of the survey, including commentary for each question, can be found in our free resource portal at: www.SIGMAactuary.com/resources. This report also includes recommendations for improving an entity’s collateral picture, and a list for further reading.
We have just opened the survey for 2014. If you would like to participate please take a moment to do that at: www.SIGMAactuary.com/survey.
For Further Information:
Contact Michelle Bradley, ACAS, MAAA, ARM, CERA at 866-228-8279 x 204 or mb@SIGMAactuary.com