Defining Discrimination and Quantifying Disparate Impact in Insurance

The backstop behind a captive insurance company's premium and loss reserves is its capital and surplus. For this APEX Webinar, Pinnacle Director and Consulting Actuary Daniel Linton and Consulting Actuary Nicholas Gurgone discussed the adequacy of a captive’s capital and how the capital need can change over its life span. Daniel and Nick also covered how both underwriting risk and asset risk impact a captive’s capital position, and explored deterministic and stochastic methods, as well as potential uses of free capital.

Pinnacle Principal and Consulting Actuary Rob Walling was joined by Nate Reznicek, president of Captives.Insure, and Jeff Simpson, partner at law firm Womble Bond Dickinson (US) LLP, to discuss recent IRS regulations impacting captives taking 831(b) elections. The group touched on all the relevant changes, including the important regulations related to classifying micro-captive transactions. The presenters also covered updated loss ratio thresholds, reporting requirements and potential penalties and detail how the new IRS regulations may impact captive insurance strategies.

For this Pinnacle APEX webinar, Pinnacle Senior Consulting Actuaries Gary Wang and Michael Chen provided 2025 updates on the current state of discussions on the issue of fairness in insurance. Gary and Michael explored balancing accurate risk differentiation with equitable treatment when rating variables are restricted or banned by regulation. Using a collection of foundational synthetic examples, they presented an analysis of various scenarios under imposed regulatory actions.