Podcast Explores Collateral Obligations in Large Deductible and Captive Reinsurance

IRMI's Joel Appelbaum interviews Peter Johnson, chief actuary at Spring Consulting Group, about insurer collateral obligations for large deductible and captive reinsurance programs. Collateral financially protects insurers while allowing organizations to self-insure and reduce commercial market premiums. The conversation underscores the critical role of actuarial expertise in navigating the complexities of insurance and reinsurance programs.

Peter elaborates on the actuarial methodologies used to calculate collateral requirements, emphasizing the need for accurate loss development patterns and reserve analyses. The discussion also delves into case studies demonstrating approaches to reducing collateral obligations by challenging industry assumptions and leveraging company-specific data and covers the importance of understanding and managing loss development over time, particularly for long-tail lines of business such as workers compensation.