Our Experience
Our actuaries have been providing actuarial services for petroleum storage tank funds (and related entities) for over a decade. We understand the challenges posed by aging tank populations, the relative riskiness of different kinds of tank construction material relative to the fuel stored, and the difference in frequency and severity patterns for underground versus above ground storage tanks.
Our Services to LUST Funds
The following is a list of some of the many services we can provide:
- Standard Reserve Study: Determine the cost of remediating all currently reported petroleum releases in the state, possibly at various levels of remediation. This can assist in budgeting, protecting important funds to avoid raids, determination of petroleum transport fees / tax rates, or financial projection of potential fund sunset dates.
- Tank Demographics Study: Review the “demographics” of the storage tanks in the state to assist in developing a plan to address the aging of tanks.
- Rate Study: Determine the actual cost to insure different kinds of tanks in the state. This could be performed to move closer to risk-based pricing of tanks for state funds, to identify tanks that are being under- or over-charged by the current fee-structure, to assess the viability of opening a state to private insurance, or to check that private insurance is fairly priced.
- Unreported Pollution Study: Review sites that have not recently reported releases to determine the anticipated amount of current unreported pollution in the state.
- Private Market Study: We can review the private insurance market in the state to assist in determining the availability and affordability of private insurance given tank demographics in the state.