Regulatory Consulting

Financial and Target Examinations

Our consultants have performed over 200 financial and target examinations.  These examinations have covered the entire spectrum of property and casualty lines of business including auto, homeowners, general liability, medical malpractice, warranties, high excess reinsurance, and asbestos and environmental liability.  We have been an industry leader in the Risk Focused examination approach.  We have also assisted in the financial examinations of over 50 HMOs.  

We have provided examination assistance to a wide range and types of companies, from single-state, national mono-line insurers to multi-line groups to leading worldwide reinsurers.  Occasionally, we have been called to testify in support of the departments’ findings.  In rare cases, the companies we have assisted in examining have gone into supervision, rehabilitation, or liquidation.

Liquidation, Rehabilitation, Supervision

We have experience with liquidations, rehabilitations, and supervisions of insurers in several states. Each situation has different characteristics that require experience and quality actuarial input. 

  • Reserve estimates.
  • Estimating gross and ceded reserve amounts by policy and reinsurance contract, reviews of proposed commutations and policyholder buyback agreements.
  • Assisting in the calculations of policyholder assessments.
  • Rate and product management consulting to improve existing programs.  

We have experience with virtually all aspects of regulatory oversight related to actuarial issues.

Rate Filing Reviews

M&A has extensive experience with the review of filings for state insurance departments.  We have reviewed over 2,000 rate filings in recent years, independently documenting each in a review letter or in a condensed report.  These filings have spanned virtually all lines of insurance.  We review every property and casualty rate filing that is received by one state department of insurance client, giving us exposure to every line of business that is written in that state.  Also, we have presented training sessions for rating analysts at three state departments of insurance in order to help them to review more filings on their own.

We leverage our rate review knowledge to help our insurance company clients understand how to structure their rates and how to create underwriting rules that allow them to develop and manage their book of business in a manner to maximize their resources.  We are able to use our regulatory knowledge that spans working with over 30 regulatory agencies in more than half of the States to help our clients reduce regulatory compliance issues, avoid disapproved and withdrawn filings, and increase their speed to market.

Public Policy

We provide input on the probable impact of legislation and policy changes pertaining to state insurance markets. 

  • Retained to help address insurance availability crises and opining on the feasibility of establishing state insurance mechanisms.
  • Assisted on a proposed regulation related to the use of credit reports in personal lines underwriting and rating.
  • Drafted Regulations and Bulletins for two states related to credit property and creditor-placed insurance products.
  • Quantified revenue and reviewed other effects of a proposed state legislation including changes to the Premium Tax Statutes and Mandatory Auto Insurance Law.
  • Consulted with a governor’s office on how to alleviate certain medical malpractice issues their state was facing.
  • Provided input on how to effectively regulate and respond to various prevalent ratemaking and examination issues.

Special Projects

Our consultants have been engaged in a wide variety of projects for regulatory entities.

  • Participating on multi-state examinations of a global insurance conglomerate related to false reporting of workers’ compensation premiums.
  • Assessing changes in the law and the effect of the change in the law on workers’ compensation rates and loss costs in South Carolina.  We provided testimony concluding that the law change had a significantly larger effect on loss costs (increase) than what the NCCI concluded as part of their rate filing.
  • Involvement with the National Association of Insurance Commissioners (NAIC) including assisting the Credit Property Working Group in its development of the Credit Personal Property Insurance Model Act; assistance in the development of revisions to the Credit Insurance Experience Exhibits; assisting the chair of the Personal Lines Modernization Working Group, P&C Insurance committee, in developing general guidance for the regulation of personal line rates by the states.
  • Assisting a state insurance commission and Governor’s office on how to alleviate certain medical malpractice issues that they were facing.  We worked with the Governor’s office and the State Legislature to ensure the creation of a new medical malpractice program as well as developing rates and the rating plan for the new program.
  • Participation on the professional team of a state entity that reviews  organizations’ catastrophe models.
  • Review of a company’s application to exploit one state’s law related to the acceleration of the runoff of a solvent insurer.