Meeting clients’ needs

TaylorChandler operates on a national basis with current clients from coast to coast with a weighting in the eastern US. With more than 5,000 clients, we bring an unparalleled level of service in property and casualty as well as the benefits industry.

We offer a full and complete financial management capability, while also providing limited services dependent upon the client’s needs. Over the last several years TaylorChandler has expanded its tax and compliance capabilities to better meet client needs.

• We provide various accounting services to insurance companies, risk retention groups (RRGs) and captives. TaylorChandler is proactive in assisting clients in identifying risks in order to comply with US and international tax laws and keeping our clients up to date with accounting and regulatory changes.
• We’re experienced and knowledgeable in various insurance compliance and tax matters.
• Active in several domiciles across the US with clients in more than 30 states, TaylorChandler currently serves in excess of 200 insurance clients.

With its growing presence and full capabilities, TaylorChandler is being called upon on an increasing basis by state insurance departments to assist in the review of companies filing for licensing but also companies already licensed in the state and for distressed companies.

The firm is the largest provider of continuing professional education (CPE) credits services to the industry’s major conferences, such as the Captive Insurance Companies Association Annual Conference, the Western Region Annual Conference, the Tennessee & Alabama Captive Insurance Association annual conferences, and others.

TaylorChandler’s CPE system was further developed into a web-based system that allows conference attendees to receive credits in a fast and efficient manner.

The CPE reporting system has earned outstanding reviews for its efficiency and ease of use. This system was developed in-house and has become a fully automated system of collecting, summarising, and issuing CPE credits. Response to this system has resulted in further expansion of the CPE offerings at captive insurance-related events.

Over the past year, TaylorChandler experienced strong growth in number of clients served and further expanded its CPE offering to the captive insurance industry. The firm continued its commitment to expanding services and expanding its internship programme for college attendees and recent graduates by creating a specific Insurance Day programme for prospective recruits.

We have been called upon by regulators to provide support in reviewing and examining financial statements for various domiciled companies, generally regarding troubled captives and RRGs. As a result of our reputation and level of experience, the firm is called upon to provide varying levels of financial reporting, tax and compliance. TaylorChandler provides superior service and has been called upon by its RRG clients to provide to meet the increased regulatory and corporate governance requirements imposed upon RRGs.

Within TaylorChandler’s work in the benefits sector, it has been called upon to track the aggregation of deductibles. We have partnered with Iron ReHealth to implement a custom accounting system that streamlines financial reporting for all facets of the operation including premium, claims, and loss reporting.

In response to the needs of several clients, TaylorChandler has developed an in-house risk-based capital (RBC) model that can accurately calculate an entity’s RBC. This information is invaluable for key decision-makers within management.

Because the RBC of a new or small insurance company can be so volatile, our in-house RBC model is often used to gauge the effect of any number of significant transactions on the company’s RBC.

Our model allows variable inputs to be entered, which allows management to see exactly how a complex reinsurance arrangement or loss portfolio transfer could affect their solvency as it relates to the RBC. With this knowledge, TaylorChandler can assist management with designing a transaction that has a positive impact on the end of the year RBC that will be filed with the National Association of Insurance Commissioners and state regulators.

One example of the model in practice is a young insurance company that had experienced large premium growth. Premium growth is one of the main stressors on an early company’s RBC and is frequently the top issue regulators look for when determining the financial strength of a company.

The client was interested in a way to mitigate the premium growth penalty while securing the business that it had the opportunity to write.

By using our in-house RBC model, we were able to design a quota share arrangement that ceded earned premium to a third party. This allowed the client to write the business, while ceding the earned portion of the premium, resulting in a minimal negative impact to the solvency of the company.

Due to the variable input capability of the model, we were able to determine a ceding commission that would completely negate the premium growth penalty and in turn increase the RBC for both the client and the reinsurer to a level that the regulators would be comfortable with. Once the calculation had been done, we were able to monitor the RBC on a quarterly basis to determine any further action that could further push the RBC in the needed direction.

This model, in connection with TaylorChandler’s expertise in Statutory Accounting Principles and Generally Accepted Accounting Principles, provides an insurance company with a solution to its RBC issues that is in compliance with the applicable financial reporting framework and state regulations.

Ed Chandler is the director of TaylorChandler. He can be contacted at: echandler@taylorchandler.com