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There has never been a
better time to have an established relationship with an independent
consulting actuary. Don't let these top 7 misconceptions about actuarial services
prevent you from gaining the competitive advantage of an actuarial
resource.
#7
“My CPA/auditor says I
have to use their actuary.”
SIGMA
RESPONSE: Under
recently adopted SEC rules, your accounting firm cannot provide
actuarial consulting services during the audit engagement period.
#6
“I don’t need an
actuary to sign off on my reserves.”
SIGMA
RESPONSE:
In some cases, a large insured or self insured entity is required
to utilize “actuarial techniques” to estimate reserves. The best way
to ensure that actuarial techniques are utilized correctly is to use an
actuary!
#5
“Actuarial studies are just for
other actuaries.”
SIGMA
RESPONSE: A SIGMA study is written
for the Risk Manager or CFO. We
do not use actuarial jargon and our studies are filled with colorful
graphics and a concise executive summary.
“Informative”, “readable”, and a “valuable decision
making tool” are words our customers use to describe a SIGMA study.
#4
“Actuarial analysis is
expensive.”
SIGMA
RESPONSE: Given the total cost of risk of an insurance
program, an actuarial study represents a small fraction of the overall
costs. And, as part of every
SIGMA analysis, you receive a payout schedule that will assist you in
better matching loss payouts with available cash.
This can improve your investment strategies.
Don’t think of actuarial analysis as an expense, but as an
information and analytical investment!
#3
“I don’t have to
include an actuarial resource in my brokerage proposal.”
SIGMA
RESPONSE: Many brokers have discovered the hard way that a
proposal submitted without an actuarial resource is not competitive.
With SIGMA’s unique private label
relationship, you can submit a proposal and include actuarial resources
seamlessly. Take the issue off
the table by calling SIGMA today!
#2
“My underwriting
submission does not need an actuarial analysis.”
SIGMA
RESPONSE:
If you do not include an actuarial analysis in the underwriting
submission, then the underwriter (or the insurance company’s actuary)
will complete one for you. Who would you prefer be your advocate?
#1
“I don’t need actuarial input
in selecting an insurance program.”
SIGMA
RESPONSE: Typically, the largest costs associated with an
insurance program are losses or premiums. Your due diligence is not
complete until an actuary has reviewed these costs.
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