2020 Collateral Environment and SIGMA’s Collateral Survey

Following the financial challenges of 2008, SIGMA noticed a significant change in the collateral environment related to self-insured and large deductible programs. In 2009, we began conducting a collateral survey that attempted to gather industry perspective on a range of collateral issues.

SIGMA offers many resources in the area of collateral, some of which may be found below.

Note: the following links require a login to RISK66.com. Register for free educational access.

• Collateral Requirements Graphic – this one-page document details the five main steps of determining collateral and explains how actuarial analytics can impact this process.
• Large Deductible Graphic – this document offers perspective on some of the key decision points surrounding large deductible programs, including collateral requirements.
• SIGMA Talks for Current and Prospective Clients – these two documents can serve as a guide for helping clients feel comfortable and confident when discussing collateral.
• Loss Forecaster Overview – the Loss Forecaster tool within RISK66 can provide a reserve analysis on historical losses, which is a crucial component of the collateral calculation.
• SIGMA Snapshot: Reserve Analysis – this “snapshot” document covers reserve analyses in greater detail and offers insight into how they are used when determining collateral.
• Collateral Requirements Video – this video discusses collateral requirements including what they are, why they are needed, and how they should be determined and managed.