Actuarial: The Backbone of Summit’s Financial Strength | Q&A with Summit’s Greg Talbot
Summit Senior Vice President of Actuarial and Underwriting Greg Talbot shares how the department helps keep Summit on the leading edge.
Greg invested five years of rigorous study to earn his credentials as a Fellow of the Casualty Actuarial Society—a journey he says is well worth it for the privilege of playing such a vital role in Summit’s success.
“We provide data analysis tools to identify claims that could have poor outcomes. Our adjusters then allocate more resources to the claims, resulting in lower costs and better outcomes for the injured worker.”
– Greg Talbot
From your perspective, what makes Summit different?
It may be cliché to say, but it’s definitely the people. I work with highly motivated professionals in a laid-back environment. Somehow, Summit pulls off that contrast. I think it starts from the top and works its way down. The management team is down to earth, approachable, reasonable, and well-educated in insurance analytics. That makes the business run smoothly and allows our customers to receive the full benefit of our expertise.
How do actuaries support policyholders and agents?
We always make certain we have sufficient reserves to fund future claims. This protects policyholders by ensuring Summit can meet obligations, even in times of economic uncertainty.
We have a unique skillset that allows us to take data collected by the business and convert it into useful information. To do that, we must understand the company’s data structures and the tools needed to efficiently query the data. And, of course, we need a mastery of how the workers’ comp insurance engine operates overall.
Which departments do you work closely with, and how do you support them?
We work with nearly all departments at Summit, especially underwriting and claims. Over time, we’ve provided more on-demand data to our business units, allowing our organization to make informed and timely decisions.
We began using advanced analytics in the underwriting department about 15 years ago. These tools help our underwriters use information like the account’s loss history and financial history to assess the risk level.
In our claims department, we provide data analysis tools to identify claims that could have poor outcomes. Our adjusters can then allocate more resources to the claims, resulting in lower costs and better outcomes for the injured worker.
We prepare extensive reports for the company to help inform decisions, including quarterly reports for the executive team, which show a wide range of summary metrics to communicate business performance. My team also produces numerous month-end and intra-month reports on claims, underwriting, sales, loss prevention, auditing, and other departments.
Actuarial’s statistical data reporting team produces an average of 400 reports annually, along with more than 500 reports and 150 dashboards that are automated for users to update upon demand. These reports help to provide the necessary information to leadership and other departments to drive business decisions throughout the organization.
How does the Actuarial department monitor Summit’s financial stability?
We use historical patterns and proven statistical methods to help forecast the future and potential financial impact. This helps Summit set appropriate premiums and reserves, ensuring we can cover claims while remaining profitable. The actuarial role is necessary, not only regulatorily, but to provide information to those doing the day-to-day decision-making. Accurate data is becoming more and more critical every day.