By Michelle Bradley, ACAS, MAAA, ARM, CERA and Lucy Zhang
In the last quarter of 2014, 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 2013.
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 13 question survey, which received 85 respondents show:
- The percentage of respondents indicating that most of the parameters of the agreement were negotiated prior to the policy inception has increased since 2013. The percentage of respondents indicating that some of the parameters of the agreement were negotiated has decreased since 2013.
- In 2014 there was approximately a 3% increase in the respondents indicating they used actuarial consultation or analysis is 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 here in our RISK66 Resource Library (login required to view).
To sign up for a complimentary account, sign up at www.SIGMAactary.com/education.
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