California New Regulations – Filing Required to Remove Gender from Auto Insurance Rates

As you may be aware, the California Department of Insurance (“CDI”) issued regulations prohibiting the use of gender in automobile insurance rates. If insurance companies use gender in determining the rates for personal auto insurance, they will be required to submit a filing removing gender from the company’s class plan by July 1, 2019. The regulations only mention a filing deadline and do not specify a required effective date.
Companies have the option to submit a simplified revenue neutral class plan filing, which is described in Section 2632.11(c)(1) of the regulations. Companies may also comply by submitting a full class plan filing that includes a sequential analysis supporting the proposed changes and compliance with the factor weights. However, this approach has some drawbacks, which may result in most companies choosing the simplified filing approach.
If you need assistance with the class plan filing or have any questions on the new regulations, please let us know. We have discussed the regulations with the Division Chief of the Rate Regulation Branch at the CDI and understand the advantages and disadvantages of the simplified and full class plan filing approaches.
Contact us with any questions on new regulations or if you need assistance with the class plan filing.
Contact:
Scott Knight
Managing Principal
Chief Sales Officer
310.889.0947
sknight@perrknight.com

Reserving Services for Companies Considering a Change in Actuaries

If your company is contemplating a change in the actuary that issues the Statement of Actuarial Opinion on the company’s reserves, please consider obtaining a quote from Perr&Knight. We are one of the top 10 largest property and casualty actuarial consulting firms in the United States and employ more than 100 insurance professionals, including 25 Fellows and Associates of the Casualty Actuarial Society and the Society of Actuaries. Our actuaries have experience with nearly all property and casualty and accident and health lines of business.
Perr&Knight provides the following reserving services:

  • Loss reserve analyses;
  • Long duration contract unearned premium reserve testing;
  • Statements of actuarial opinion; and
  • Schedule P preparation/review.

Our actuaries understand that each company has unique characteristics associated with their operations. We work with our clients to obtain a complete understanding of their business so that we can produce the most accurate reserve analysis.
Contact us with any questions about Perr&Knight’s services or if you would like to obtain a quote.
Contact:
Brett Horoff, ACAS, ASA, MAAA
Principal & Consulting Actuary
Director | Consulting Services
310.889.0944
bhoroff@perrknight.com

Perr&Knight Recommends Predictive Analytics to Get the Most Out of Your Data

Are you getting the most out of your data? Whether it be in personal lines pricing, commercial lines underwriting, claims handling or fraud detection, your data should be helping you run an efficient, profitable organization. Through predictive analytics and your data, you can gain insights into your business, like:

  • What is the most predictive rating variable?
  • What policy/claim characteristics point to fraud?
  • Which external data can help me better price my risks?
  • On which claims should you place the most experienced claims managers?
  • What variables outside the rating plan are predictive of underwriting results?
  • What variables give insights to reduce litigation expense?

Let Perr&Knight’s Predictive Analytics team help you utilize your data to its fullest potential with our low-cost predictive analytics solutions using cutting edge technology and industry best practices.
Predictive Analytics: Data Science & More
Our data scientists work alongside our actuaries and other insurance experts to provide a tailored business solution. Perr&Knight is one of the top actuarial consulting firms in the United States with expertise spanning all lines of business and U.S. jurisdictions.  Our Predictive Analytics team provides clear solutions using your data along with our industry knowledge to help you stay competitive and profitable.
InsurTech
With new InsurTech products available to the insurance industry, knowing how to integrate these tools into your business takes a specialized skill. Perr&Knight has experience merging new variables with company data and analyzing for insights tailored to your book of business. We work with InsurTech innovators to review predictive models and support insurance applications with regulators.
Let Perr&Knight incorporate big data into your insurance products to help you stay relevant in the ever-changing insurance market. Contact us today to learn more.

Perr&Knight Recommends Compliance Spring Cleaning

Are your operations due for some Spring Cleaning? It’s never a bad time to make sure your insurance operations are in order and ready to face an internal audit or market conduct exam. A little Spring Cleaning, in the form of a compliance audit, can help a company avoid fines, cease and desist actions or even loss of license.

  • Do you record and respond to complaints in the required timeframe?
  • Are your producers properly licensed?
  • Are schedule rating debits and credits sufficiently documented by your underwriters?
  • Do the rates in your system match your filed rates?
  • Are you utilizing approved forms?
  • Are claim files reserved according to established procedures?

We Can Help

Let Perr&Knight’s consulting team help you identify and correct compliance risks. If you’re looking for a full-scale review, our team of regulatory compliance professionals and operational and technology consultants will assess your current operations through a combination of staff interviews and documentation review in each of the NAIC’s seven areas of operation: operations/management, complaint handling, marketing and sales, producer licensing, policyholder service, underwriting and rating, and claims. We’ll draft “as is” process maps that document your current processes and use them to identify compliance risks and process inefficiencies. Then, based on our extensive subjective matter expertise and knowledge of best practices, we’ll draft “to be” process maps with proposed solutions for closing gaps and streamlining processes in a compliant manner. In addition, we can support you as you implement changes to processes.
If you’re looking for a more targeted review to help remedy a risk or compliance gap that you’ve already identified, Perr&Knight can help. Our regulatory compliance consultants can perform a more limited analysis, such as a compliance audit of a single area of operation, a sample file review of claims and/or policies, a rate manual compliance review, a certificate of authority inventory, etc. We will customize our services to meet your needs.

Contact Us

Contact us online or give us a call today to discuss how Perr&Knight can help you!
+1.888.201.5123 ext. 3 // www.perrknight.com

Virtual Viewpoint: How to Develop a Solid Business Case

Rob Berg, a principal and director of Perr&Knight’s Insurance Technology Group (ITG), recently lent his expertise to PropertyCasualty360.com by answering the question: “What steps need to be taken to develop a solid business case when business and IT leaders realize new systems are in order?”
Read Rob’s response here to learn which critical questions organizations must ask themselves in order to address the three components of a solid business case.

Big Changes Are Coming to RateFilings.com on January 5, 2013

A NEW USER EXPERIENCE
The new RateFilings.com features a completely redesigned user interface, which emphasizes ease-of-use and improves the overall user experience. We will continue to make similar improvements and welcome feedback regarding your user experience.
NEW AND UPDATED APPS
New Competitor Filing apps include Quick View 100 and Hot Filings, both designed to simplify the process of tracking competitor filings. New Product Management apps, including Product Pro Desktop and Product Planner, aid in the product management process. Finally, RateWatch will be updated to deliver reports in html format, replacing pdf downloads.
PROFESSIONAL, ENTERPRISE & UNLIMITED EDITIONS
Beginning January 5, 2013, RateFilings.com will be available in Professional, Enterprise and Unlimited Editions. Existing Basic Access users will be subscribed to the Professional Edition, Premier Access users will be subscribed to the Enterprise Edition, and Premier Access Platinum users will be subscribed to the Unlimited Edition.
SUPPORT
An updated user manual will be available on the new Support page to help you navigate the new user interface, and for guidance using the various RateFilings.com apps and site features. You can also contact us directly from the Support page if you have any questions.
LEARN MORE
Please join us for a webinar to learn more about these changes. Two dates are available for your convenience:

The Affordable Care Act Presents Tremendous Accident and Health Opportunities for Insurers

ahproductdev
The Supreme Court of the United States’ decision to uphold the Affordable Care Act will greatly affect the future of major medical health insurance in this country.  There is tremendous revenue opportunity for insurers in the supplemental health care market in the immediate and long-term future.  For firms considering taking advantage of this growing market, the time to act is now.
Whether you’re in the early stages of exploring the supplemental health care market, you’re interested in what your competition is doing, or you’re planning to update your accident and health (A&H) products to remain competitive, Perr&Knight can help.  We are uniquely qualified and perfectly suited to assist property & casualty (P&C) companies with their supplemental health endeavors.

  • We’re a one-stop shop.  Perr&Knight is the only firm of its kind offering a complete array of actuarial consulting, forms development, competitive intelligence and state filings services in all states and for all supplemental health products.  We can provide assistance to companies throughout the entire product development cycle from competitor/market analysis and initial product pricing all the way to rate, rule and form filing support and product implementation.  We can be ‘plugged’ into any or all components of the product development process to fit your unique needs.
  • Our consultants speak both P&C and A&H.  We understand and can address the unique challenges faced by P&C companies as they enter the supplemental health market, from a lack of in-house expertise to differing terminology to resource constraints.  In addition, because our staff includes both P&C and health consulting actuaries, product design consultants and state filings analysts, we are able to fully support hybrid products containing both P&C and A&H components such as Travel Insurance and Medical Excess Stop Loss.
  • Our experience is wide-ranging, recent and relevant.  We have recently developed and launched several nationwide supplemental health products for our clients including Disability Income, Critical Illness, Major Medical Gap Coverage, Limited Medical Indemnity, Short Term Medical, Travel Accident, and AD&D.  As a result, we’re tuned into the current marketplace and regulatory climate.

For more information, please download the following brochure:
Accident and Health Product Development
Contact Kristy Greco for assistance with your supplemental health products, or any questions you might have.
PHONE: 352.222.0083
E-MAIL: kgreco@perrknight.com
WEB: PerrKnight.com

The commercial insurance market is hardening. Be prepared.

hardmarket
Evidence shows insurers may not have been properly prepared for our last major hard market, based on the staggering losses companies experienced. Four of the six largest underwriting losses in the history of the U.S. P&C insurance industry occurred during 1999-2002, with cumulative underwriting losses reaching $138 billion.
The commercial insurance market appears to be hardening again. The 2012 Risk and Finance Manager Survey found that nearly two-thirds (63 percent) of survey participants were either seriously or moderately concerned over a hardening P&C insurance market. Another one-third (32 percent) expressed slight concern.
Instead of just being concerned, take action. With the P&C market likely to continue hardening in 2012 and into 2013, it is imperative for insurance companies to stay ahead of the market and proactively manage the rates of their books of business.  Perr&Knight is available and ready to assist with those reviews, as well as the preparation and submission of rate filings.
We take specific interest in commercial analysis, including these lines of business, among others:

  • Commercial Auto
  • Commercial Property (Fire, Allied Lines, and Inland Marine)
  • Commercial Multi-Peril
  • Medical Malpractice
  • General Liability
  • Professional Liability
  • Product Liability

Perr&Knight annually submits thousands of filings and is experienced in every line of business and in all states.  We are among the top ten largest P&C actuarial consulting firms in North America, with skilled actuaries available to review program experience, analyze industry trends, recommend changes, and prepare filing packages. We are experts at submitting filings with a proven track record of receiving approvals, even in highly regulated states such as California, Florida, New York, and Washington.
If you’re interested in staying ahead of the market, Perr&Knight can help get you there. For more information, please download the following brochures:

Contact Kristy Greco to get started.
PHONE: 352.222.0083
E-MAIL: kgreco@perrknight.com
WEB: Click Here

Ensure Compliance with Florida House Bill 119

FLHB119c
On May 4, 2012, Florida Governor Rick Scott signed House Bill 119 into law. The bill, among many things, changes the way accident reports are taken, provides coverage limits, establishes a schedule of maximum charges, creates a list of diagnostic tests deemed not to be medically necessary, and controls attorneys’ fees. These changes impact both personal and commercial personal injury protection and affect insurers by:

  • Requiring all personal auto writers to submit a rate filing by October 1, 2012 and a second filing by January 1, 2014 that reflect the savings as a result of this bill.
  • Requiring commercial auto writers to evaluate the impact of the changes on their book of business and submit a filing if it is determined the filed rates are excessive after considering the impact of the bill.
  • Allowing insurance companies to limit payment effective July 1, 2012, as authorized by the new regulation. To do this, companies must include a notice at the time of policy issuance or renewal and the form must be approved by the Florida Office of Insurance Regulation.

The first personal auto rate filing in response to HB119 has already been submitted, as well as multiple personal and commercial auto form filings.  Perr&Knight is actively monitoring filings to keep our clients up to speed on the competitor activity regarding the requirements resulting from HB119. Our Hot Filings Alerts provide that information on an ongoing basis.
If you are interested in obtaining assistance with these required changes, Perr&Knight is the ideal choice to make the process as simple as possible. Perr&Knight has distinguished itself as the only firm of its kind offering a complete array of actuarial consulting, competitive intelligence and regulatory compliance services. Our actuaries’ ability to leverage the knowledge and information available through our companion services distinguishes us from other actuarial firms.
With approximately 30 actuaries including nearly 20 Fellows and Associates of the Casualty Actuarial Society, Perr&Knight is among the top ten largest property & casualty actuarial consulting firms in the United States. Seven of our accredited actuaries are located in our Boca Raton, Florida office, making us the largest property & casualty actuarial consulting firm in the state of Florida. Perr&Knight’s actuaries have supported and submitted hundreds of rate filings for nearly all lines of business in Florida.  We have extensive experience with obtaining approval for Florida auto filings and are already scheduled to work with other Florida auto writers to develop and submit their required changes.
The links below provide additional information about HB119 and the required changes resulting from it.

For more information about how Perr&Knight can help you, please download the following brochures:

Contact Kristy Greco for assistance with the rate review or filing process, and any other questions that you might have.
PHONE: 352.222.0083
E-MAIL: kgreco@perrknight.com
WEB: Click Here

CMS Section 111 TPOC Reporting Commences 1.1.2012

The Total Payment Obligation to the Medicare beneficiary (TPOC) refers to the dollar amount of a settlement, judgment, award, or other payment in addition to/apart from ongoing medical responsibility.  For liability insurers and self insurers, data must be captured for TPOC’s occurring after 10.1.2011 – and production level reporting will commence within the first quarter of 2012.
As such, we want to remind our clients to focus on preparing claims workflows and data capture in anticipation of these dates quickly approaching.

BE PREPARED

As you prepare, it is important to remember that:

  • Compliance is not simply a straightforward “data reporting” process as many vendors in the market place insist.
  • In fact, it is being reported that many vendors that don’t have the proper expertise are having significant challenges in adapting to medical claims based reporting.
  • Without a comprehensive, turn-key solution, reports to Medicare may be timely but fines could still be imposed at some point within the program due to erroneous reporting of data elements.
  • Ongoing education and management is required to comply with a Federal mandate that will continue to have rules changes – probably for the next few years.
  • Medical Set Asides (MSA’s) – which have traditionally been done only for workers compensation – will soon also be required for all liability lines and the terms of these agreements will have to be incorporated into the Section 111 quarterly reports filed.
  • This truly is a complex program initiative for all entities required to participate.

CHOOSE THE RIGHT SOLUTION

Perr&Knight’s proven consulting services provide excellent functional support to our growing Medicare Section 111 reporting community.  This focus – along with our flexible, user friendly data portal and advanced technical capabilities – provides a value add that must be strongly considered. Our services ensure that our clients are kept aware of the latest changes in the Medicare guidelines and our data portal is maintained so that the CMS rules are continually updated and proper error analysis is conducted – which are both included in your “turn-key” solution fees for administering the reporting function.

We also recognize that many clients would like a “one stop shop” that handles both the Medicare Section 111 Reporting as well as the Medicare Set Aside (MSA) work. To this end, we have aligned ourselves with a well experienced partner should your company have a need for this service as well.

CONTROL COSTS

We understand the need for insurers to control costs in today’s economy; therefore, our set up and quarterly reporting fees are very fair for a comprehensive solution that focuses on consulting; ensures successful registration, testing and reporting; and empowers our clients with a data portal that will be updated continually to ensure Medicare reporting compliance for our client community.

CONTACT US

Please contact us for more information.