Huggins undertakes insurance and reinsurance litigation and arbitration support projects and provides such support as the law firm and/or company may request. We will also generally consult with, advise and assist the law firm and/or company. Our actuaries and insurance industry experts provide sophisticated actuarial and statistical analysis in support of our expert witness actuaries. We will also provide a written expert report detailing our analyses and conclusions, if requested. Huggins has extensive experience in both expert witness and litigation support valuation services.
Lawsuits and Arbitrations
Huggins has several consulting actuaries who have extensive litigation support experience and have appeared as expert witnesses at trial in federal, state and county courts and in arbitration hearings. Our actuaries and insurance industry experts provide sophisticated actuarial and statistical analysis in support of our expert witness actuaries. We brief the attorneys for our clients on insurance industry issues and standard practices. We prepare our clients for not only the actual litigation itself but also for settlement opportunities, considering various outcome probabilities as well as performing damage calculations using sophisticated models to simulate damages and various scenario outcomes.
Huggins’ experienced expert witnesses are especially superb in the deposition environment, providing quick but thoughtful answers that are advantageous to the client and ensuring that the client’s counsel is asking the right questions.
Reinsurance Treaty Risk Transfer Analysis
We review reinsurance contracts, both prospectively and retrospectively, for risk transfer qualities. Huggins has extensive experience in “forensic” risk transfer analyses and has provided expert witness testimony in risk transfer proceedings.
Review of Reinsurance Contracts and Analysis for Mandatory and Voluntary Reinsurance Commutation
We review existing or proposed reinsurance contracts, including analyses of loss experience, for proposed renewal of the contracts and analyze existing contracts with regard to suitability for voluntary commutation or mandatory commutation.
Huggins’ expert witness actuaries are fully credentialed (all are FCAS’s and MAAA’s) and have represented clients from both a defendant and a plaintiff perspective. Huggins analyzes and evaluates these situations from a forensic actuarial perspective, emphasizing conformance or lack thereof to Actuarial Principles and Standards of Practice.
Loss Reserve Analyses – Including Mass Torts
Significant uncertainty, variability, and at times lack of data are characteristics of latent mass tort valuation. Huggins has significant experience in mass tort reserving from both a consulting and a company perspective. Huggins actuaries have held chief actuary positions at companies with significant mass tort liabilities.
M&A – Loss Reserve Analysis
The largest liability on the balance sheet of an insurance company is its provision for loss reserves. Huggins has performed loss reserve valuations for many clients in M&A situations. Huggins supplements its loss reserve valuation process by providing not only an actuarial central estimate but enhancing the estimate with ranges with confidence intervals that will assist the client in determining an appropriate cost for the proposed transaction by considering the relative risk.
M&A – Pro Formas
Huggins has extensive experience in working with clients in the preparation of pro formas for start ups and for merger and acquisition opportunities.
M&A – Integration of Actuarial Services
Huggins consultants have extensive experience in working with a new entity in the integration of actuarial services across all lines of business.
Rate Regulatory Hearings
Several Huggins consultants have experience at providing testimony at state insurance department rate hearings from both a company and regulatory perspective.
Claims Leakage Evaluations
Working with your claims adjudication professionals, Huggins can provide predictive modeling and claims analytics to incorporate into a leakage analysis. Huggins can help identify trends and opportunities for process improvement.
Workers’ Compensation Individual Claim Simulation Model – “ICSM”
Workers’ compensation claims provide a unique opportunity to utilize both “traditional” P&C and annuity actuarial concepts in order to provide a more accurate and intuitively appealing methodology to project needed reserves for workers’ compensation claim benefits which may have a lifetime exposure, e.g. indemnity benefits and unlimited lifetime medical benefits. The “run-off” of these claims is, for all intents and purposes, “independent” of the historical paid and incurred development approaches; e.g. the loss development approaches do not “work.”
As a result, Huggins Actuarial Services has developed an ICSM that simulates probable outcomes and provides the insured/insurer/reinsurer with not only expected values but also with a range of outcomes expressed as confidence intervals for all retentions and/or ceded reinsurance layers. Also, the incremental annual paid loss projections of the ICSM produce a range of discounted cash flow indications for situations where loss discounting is permitted or present value results are needed, e.g. in a reinsurance/individual claim commutation (settlement) or loss portfolio transfer situation. An additional “bonus” of the ICSM is that the selection of tail factors, which could go out for 50 years or more, is “avoided” and the development implied in the ICSM can be used to modify the “traditional” loss development triangles with development factors for the tail which are unique to the peculiarities of the individual insured/insurer/reinsurer.