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1 June 2024NewsAnalysis

FORTY under 40:Jason Luckett

Jason Luckett, Actuarial consultant, SIGMA Actuarial Consulting Group, Inc.

Jason Luckett joined SIGMA in 2016 as an actuarial analyst and is currently working as an actuarial consultant. His primary areas of expertise are workers’ compensation, automobile liability, general liability, professional liability, and cyber liability insurance coverages.

His consulting services with SIGMA involve the preparation of actuarial reserve analyses, loss projections, and loss allocations for self-insurers, large deductible programmes, and captives across a range of industries. He also performs Monte Carlo simulations to model client losses and to assess the effects of varying levels of risk retention.

In addition to his consulting duties, Luckett participates in SIGMA educational webinars, spearheads the completion of project proposals, contributes to product development for SIGMA’s RISK66 suite of services, and assists in the compilation of SIGMA’s industry benchmarking data.

Luckett graduated summa cum laude from Middle Tennessee State University in 2016 with a BSc in mathematics with a specialisation in actuarial science and a minor in insurance. He is currently pursuing an Associate designation in the Casualty Actuarial Society and has completed exams 1, 2, 3F, MAS -1, MAS-2, and 5 as well as each of the required VEE and online courses.

How did you become involved in captive insurance?

One of the first projects I contributed to while working at SIGMA was a reserve analysis used to support year-end financial reporting for a Tennessee-domiciled captive. As my career at SIGMA has continued, I have completed similar analyses for other established captives in a variety of domiciles as well as contributing towards the completion of loss projections and captive feasibility studies which are used during the captive formation process.

What are the biggest challenges of working in this industry, and what do you find the most rewarding?

One of the strengths of the captive insurance market is that it allows companies to fill in coverage gaps and tailor coverage specific to some of their non-traditional and emerging risks that may be harder to place within the market, such as cyber risk and property risk related to catastrophic weather events.

From an actuarial perspective many of the traditional actuarial methodologies cannot be utilised for some of these risks, which can present a challenge. Providing actuarial support on these types of risks often requires a significant amount of research and model testing to come up with reasonable assumptions for how to quantify them and what strategies can best be used when facing these risks.

“Young professionals who are starting their careers today have a chance to be a part of groundbreaking solutions.”

This in turn leads to what I deem one of the most rewarding parts of working within the captives industry so far, in that I can assist my clients throughout the strategic decision-making process as they look to meet their current coverage needs while also laying the groundwork for future coverage solutions.

Would you recommend the captive insurance industry to young people as a future career path?

I would recommend the sector to any young professionals who enjoy using creative thinking to problem-solve and discover unique solutions. With the industry continuing to evolve there are likely still strategies yet to be uncovered. Young professionals who are starting their careers today have a chance to be a part of groundbreaking solutions that are discovered for the future.

What developments do you see ahead for captives?

With the hard market experienced over the last several years many companies have considered captive insurance as a potential solution to meet their coverage needs. Whether or not these companies have decided to form a captive over the recent hard market, many of them have laid the groundwork for solutions to future problems.

I foresee captives continuing to be a path for companies to place their non-traditional and emerging risks over the coming years as the market likely softens, but I also see the potential for these companies which have laid the groundwork to be able to quickly turn to this option to incorporate other risks in the future as the market inevitably has a transition from a soft market back to hard.

Do you think your long-term future remains in the captives market?

I see myself continuing to be involved in the captives industry for many years to come. I hope to continue to form strong relationships with the domiciles and regulators that my clients are currently doing business with, but I also hope to increase my engagement with domiciles I have not yet worked with in order to provide my clients with a comprehensive understanding of all their options.

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