Acturial Fee's?

[Guest Garry]

We are reviewing and working with a group and its board of directors and they are wondering if they should shop their acturial services. I wondered if anyone has a good feel for the range of hourly fee rates charged in the marketplace and an explanation for the variances. Some of the board can't seem to grasp the reasons for the hourly rates charged. I would greatly appreciate any feedback about rates and justification for these rates.

Thank you,

Garry

[richard]

Probably the simplest answer is to restate the question in terms of what senior management and its Board would understand.

Should they shop the fees of corporate counsel?

The answers are virtually the same, from the fee ranges ($200 per hour, sometimes less, up to $400 per hour), the qualifications and background of the actuary and the firm, the type of assignments that are required, etc.

The size of the company, its sophistication and the sophistication

of the members of its Board usually determine the types of service providers and their fees. (In other words, large, sophisticated clients tend to be comfortable with higher professional fees, small, unsophisticated clients tend to be not as comfortable.)

[Lorraine Dorsa]

When shopping for actuarial services (and any other professional services for that matter), be sure to be clear about the services you are looking for.

I have been asked to quote on projects, have done so and then have been told my quote very different from a quote from another actuary. Sometimes the difference is really a difference in our rates or the time we expect to spend on the project, but other times it is due to a different understanding of the project.

Also, not all actuarial services will be provided by the actuary him/herself--some work will be done by associates and staff. Rates for staff should also be considered.

I provide actuarial services to small plan area and many of my fees are based on a fee schedule, not an hourly rate. This is another reason to define the services requested rather than just looking at hourly rates.

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