SIGMA’s Collateral Survey Results

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 Resultscs2013_image

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

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Michelle Bradley, ACAS, MAAA, ARM, CERA

About Michelle Bradley, ACAS, MAAA, ARM, CERA

Michelle graduated summa cum laude as valedictorian from Lipscomb University in 1988, receiving a B.S. Degree in Mathematics. She then attended Vanderbilt University and received a M.S. degree in Mathematics. Michelle is an Associate in the Casualty Actuarial Society and is a Member of the American Academy of Actuaries. She also obtained the Associate in Risk Management designation in 1996 and received the award for academic excellence in that program. She served as president for the Casualty Actuaries of the Southeast for the 1999-2000 year. From 1990 to September 2003, she was Vice President and Consulting Actuary for Willis Risk Solutions of Willis North America. During this time she consulted extensively in the areas of actuarial, risk management and enterprise risk management. Michelle received the CERA (Chartered Enterprise Risk Analyst) designation in 2013. She has also served on the board of directors for the Society of Risk Management Consultants. She currently serves on the Advisory Council for Middle Tennessee State University’s Master of Science in Professional Science Program (MSPS). In the area of enterprise risk management, she has focused on modeling issues as regards integrated programs that often include non-traditional risks. She has significant expertise in risk mapping and alternative risk transfer mechanisms. She has been a member of numerous project teams that provided enterprise risk consultancy services and was part of the project team that completed the integrated program that was hailed the “Deal of the Decade” by CFO Magazine (June 2000).

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SIGMA Actuarial Consulting Group, Inc.
5301 Virginia Way, Ste 230
Brentwood, Tennessee 37027
PHONE:    866.ACTUARY     866.228.8279
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