More regulators of Workers' Compensation Self-Insurance Programs are requiring an actuarial certification of self-insurance reserves. Minnesota and Iowa have required it for years. Texas implemented it when they allowed self-insurance in 1993. Several other states have required actuarial certifications as well.

Financial Challenge

With self-insurance, any reduction in the frequency and severity of claims will translate directly as cost savings to the employer. Consequently, every effort should be made in reducing frequency and severity.

How AMI can help

AMI have the skills and experience to meet these requirements. Specifically, we can help in the management of risk as follows:

• perform feasibility studies to evaluate the appropriateness of self-insurance or risk retention groups, or captive insurance company. We will consider the level of risk as well as the potential cost savings.
• estimate the loss and loss adjustment expense reserves of self-insurance programs, risk retention groups or captive insurance company to meet financial and regulatory requirements.
• identify developing trends that might have a significant adverse impact on future claims. Are claims increasing faster than expected? Are case reserves consistent with benchmarks established for the insurance industry?
• assist or perform claim audits of in-house and/or third party administrators
• evaluate total cost of risk and the appropriate allocation by operating units. We will balance responsiveness to actual historical claims and stability of allocation
• evaluate managed care initiatives
• evaluate appropriateness of existing excess insurance program. Consider alternative structure and/or retention levels
• furnish risk management and claims information systems through our ClaimSys softwares
• assist in the design and selection of the appropriate risk management system by assuring that required data fields and reports are addressed
• assist in the tracking of certificates required of contractors, subcontractors and consultants through our CTS-Certificate Tracking System software. Exposures not appropriately transferred are exposures reassumed.