Mutual Insurance Company Support

Bartlett Actuarial Group supports mutual companies in a number of ways.  We can provide pricing and reserving assistance. In addition there are a number of Product Management studies that we can perform that may improve your bottom line.

Management Report Design

We can design and update monthly or quarterly reports for management to allow them to monitor certain aspects of their business over time. This helps especially in evaluating the effect of certain company initiatives, and also highlights those areas where initiatives need to be made. Examples include reports showing: the age of open claims, how many claims each adjuster is working on, loss frequency and severity, concentration of insured values by zip code or territory and change in concentration, profile of new business by selected underwriting characteristics.

Residual Market Burden Analysis

For some state/line of business combinations (Massachusetts Personal Auto, for example), an involuntary market exists for policyholders who have found it difficult to buy insurance. Various mechanisms are used to provide insurance for these risks and share the losses among the insurers in the voluntary marketplace. To manage the total cost of providing insurance in these states, a company must consider both the results for the voluntary market as well as the involuntary market. We can assist in analyzing the structure of the residual market to determine ways for the company to reduce the burden of insuring these less desirable risks, and minimize their overall loss ratio.

Benchmarking of Salvage/Subrogation Recoveries to the Industry

Many companies do not pursue recoveries from responsible third parties as aggressively as they should. We can project future anticipated salvage/subrogation recoveries for the state and line of business and compare to peer companies. This allows companies to see if they are potentially leaving money uncollected, and investigate how to improve their recovery ratio. The expected value of recoveries are treated as income by the IRS, so this also gives companies time to prepare for the associated tax liability.

Analysis of Contingent Commission Schedule

Most mutual companies rely on independent agents to sell their policies, and these agents are compensated by commissions on the policies they sell. Independent agents work with multiple insurers, so each company needs to provide an incentive for agents to direct better risks to them. We can analyze the contingent commissions paid out to determine if the money being spent is providing an appropriate incentive for the efforts made by the agents and the results achieved. We can then work together with the company to devise a more equitable plan.