What To Expect from an Actuarial Analysis
An actuarial analysis is typically required for companies that retain a significant dollar amount of insurance risk, usually through a self-insurance program or a large deductible program, according to Rachel Seale, consulting actuary with Milliman. The actuarial analysis can be used when a company is looking to move some or all of its losses to a captive insurance company. In fact, in some cases, an actuarial analysis is the reason why someone is looking to form a captive insurance company.
An actuarial analysis is designed to provide a company with an estimate of its unpaid losses related to its insurance risks. In other words, it's a way for the company to see how much money it needs to set aside to pay for claims for which it is currently already responsible.
But overall, an actual analysis is a great way to determine if your company would benefit from a captive.
