• Auditing Firms

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Huggins has the capabilities to assist auditing firms with many of the tasks that they perform for their clients. Some of the mid-size to smaller accounting firms often either do not have in-house actuaries, or prefer to use an outside actuarial consultant for reasons of independence.

Actuarial services we offered to our accounting firm clients include:

Audit Support – Insurance Companies and Captives

We have the ability to assist auditing firms by providing an evaluation of your client’s loss and loss adjustment expense reserves as of the date of the audit, as well as an analysis of the adequacy of the unearned premium reserve, if requested. This can serve as an independent second opinion if the Statutory Loss Reserve opinion is issued by an employee of the firm or if you prefer to have an independent review performed to support the values included in your audit. Our results and conclusions will be presented and summarized in narrative format in an Actuarial Summary Review Memorandum (“ASRM”), which will include both actuarial central estimates of the loss and loss adjustment expense reserves as well as estimates of reasonable ranges for these reserves. We also provide assistance in the audit process by reviewing the following items which are typically included in insurance company reserve calculations:

  • Paid and Reported Claim Frequency
  • Paid Claim Severity
  • Assumed Interest Rate
  • Payment Patterns by Line of Business or Subline
  • Categorization of Fixed and Variable Expenses
  • Calculation of Ceded Losses
  • Range of Reasonable Reserve Estimates
  • Analysis of Exposures and Changes in Exposures Over Time

Audit Support – Non Insurance Company Self-Insureds

We can assist you by reviewing the reserves booked by any of your clients who self-insure any of their major insurance risks, such as workers’ compensation, automobile liability or general liability. Our review will provide your firm with documentation as to the adequacy of this major component of your client’s balance sheet. If requested, we also produce exhibits showing the required funding for the coming fiscal year as well as the expected level of payments to be made during future calendar years in order to settle all claims that have been incurred as of the date of the audit.

Audit Support – Healthcare Entities

We assist you by calculating the indicated retained liability under SOP 87-1 for your healthcare entity clients who are insured under claims made insurance policies. In addition, for all of your healthcare entity clients, we provide estimates of both their total claims liability and the amount expected to be recoverable from insurance, per the terms of the new FASB accounting standard, ASU 2010-24.

The Huggins Advantage

Our firm’s philosophy centers on our commitment to the highest level of quality service delivered by quality people.  Our long tradition of providing responsive, technical excellence to our clients’ needs through an integrated team approach requires that we focus on quality in every aspect of every engagement.

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Huggins Actuarial Services was ranked a top actuarial consulting firm by the A.M. Best Company for the 10th year in a row.