Reserves, rates, and funding levels all rest on assumptions about inflation, interest rates, and investment returns. CAI tests those assumptions under a range of economic conditions, so a board can see how the numbers move before the economy moves them.
Projected asset and liability cash flows under a set of interest rate paths, for life insurers and others that must show the assets support the liabilities.
Whether the assets held for a block of business are enough under moderately adverse conditions, and the opinion that goes with it.
What a run of higher medical, wage, or general inflation does to loss reserves and rate indications, especially on long-tailed lines.
Discounted reserves, investment income, and the funding level of a pool or trust under rising, falling, and flat rate paths.
Adverse scenarios for captives, risk retention groups, and pools, sized to the entity and written for the board and the regulator.
Multi-year projections of contributions, assets, and liabilities for self-insured pools and trusts under a range of return assumptions.
The timing of expected claim payments set against the timing of the portfolio's cash flows, and where the two diverge.
The liability side of the balance sheet, stated in terms an investment manager can use when setting policy. CAI does not manage money or recommend securities.
A documented basis for the discount rate used in reserves or funding, tied to the actual portfolio and the length of the liabilities.
Results stated with the scenarios, assumptions, and sensitivities shown, so the reader can see what drives the answer.
A short call to understand the question being asked.
Liability cash flows, the current portfolio, and the scenarios the board wants to see.
Modeling, comparison, and a draft to talk through together.
A memo or report sized to the question, with the work behind it.
If you have a question about how the economy might move your numbers, send a note or call.