FINANCIAL PLANNING FOR THE CEA

As the California Earthquake Authority (CEA) continues its strategic planning process, its most recent step was to select Paratus Consulting, a newly founded San Francisco-based consultancy, as its financial modeler. Paratus will help the CEA assess its reinsurance and other risk financing arrangements, as well as devising strategies to ensure the viability of CEA after a major catastrophe. The consultancy will apply Dynamic Financial Analysis (DFA) techniques to facilitate the process. DFA is “a strong management tool and will be an important part of the CEA’s strategic planning process,” according to CEA CEO David Knowles. “We owe it to our policyholders to use the best technology available to make the right decisions and prepare for the future.” Paratus Consulting is jointly owned by the U.S. consulting actuaries Miller Herbers Lehmann and their U.K. associates, English Matthews Brockman.