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Ep. 210 – Top Notch Actuarial Resources for Regional & Specialty Insurers

Shownotes

Joseph Petrelli is the President of Demotech, an Ohio-based financial analysis firm. He is credited for the development of Financial Stability Ratings (FSR). FSRs are one of the leading indicators when considering the financial stability of Title underwriters and Property & Casualty insurers. Demotech’s mission is to help level the playing field for insurance companies currently unrated or under-rated. Joe also has over 40 years of actuarial and financial analysis experience, particularly in product development, pricing, and loss cost filings. 

This episode is brought to you by:

Insurance Licensing Services of America (ILSA), America’s premier regulatory compliance experts. To learn more visit ILSAinc.com.

Joe joins us today to share how Demotech works to help provide accurate insurance ratings through FSRs. He discusses the reason he wanted a degree in Actuarial Sciences and the challenges he faced early in his career. He explains why he developed FSRs and how they accurately size up any insurance company in the market. He shares how he and his team revived the Florida market and how much of the market they have in control today. He describes how Demotech’s classifications system works and the factors they consider. Joe also discusses how COVID-19 disrupted the traditional office setting and its ergonomics.

“New tools allow us to have smarter decisions rather than just routine transactions.”

Joseph Petrelli

What you’ll learn:

  • Why Joe obtained a degree in Actuarial Sciences.
  • The challenges Joe encountered early in his career.
  • What led Joe to create the Financial Stability Ratings?
  • Fannie Mae and Freddie Mac, and how they worked with these mortgage companies.
  • The gaps in the industry Demotech intended to fill.
  • How Joe and his team resurrected the Florida market.
  • Why Florida struggled to find a rating agency in the 90’s.
  • How their company’s classifications system works.
  • How Joe prepares for the next generation. 
  • Why Data Scientists are pushing Actuaries to become more innovative.
  • How Joe expects various industries to adapt to the New Normal.

Key Takeaways:

  • You have to have, as an actuary, 30 hours a year of continuing education.
  • In insurance ratings, the business model is a better metric than financial signs.
  • 2020 has changed the way any industry looks at office spaces forever.

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