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Biography of Frank J. Rau, Jr.

  

Frank J. Rau graduated from St. John’s University in 1967 with a Bachelor of Science degree in Mathematics.  He is a member of Pi Mu Epsilon, the National Honorary Mathematics Fraternity.  He also received a Master of Science degree in Mathematics from Stevens Institute of Technology in 1970.  Mr. Rau furthered his Mathematics education beyond his Masters degree while at Stevens.  In 1993, Mr. Rau became an Associate of the Casualty Actuarial Society and a Member of the American Academy of Actuaries.

Mr. Rau began his career with Bell Telephone Laboratories in 1968 as an Operations Research/Systems Engineer.  While as an engineer there, Bell Laboratories sent Mr. Rau to Stevens for his graduate work on a full time basis.  One of Mr. Rau’s major accomplishments at Bell Labs was to develop a statistical method for pinpointing transmission faults within Bell System’s entire network.

In 1975, Mr. Rau began his actuarial career with Anistics, Inc., the risk management consulting subsidiary of Alexander & Alexander. Inc.  His initial responsibilities were to perform loss reserving and forecasting studies for A&A’s largest corporate clients.  Part of this effort was to produce confidence around the loss projections because Anistics realized early on that all risk-financing decisions are dependent upon the variability inherent in the loss generation and settlement processes.   Due to his emphasis in the projection and financing of random hazard risks, Mr. Rau became heavily involved with captive insurance companies and rent-a-captives.  He was one of the initial reviewers of captive applications for the State of Vermont and was involved with the formation of the first captives formed in Illinois under its captive law.

While at Anistics, Mr. Rau was responsible for all of the underwriting decisions for A&A’s rent-a-captive.  Much of the business placed in the rent-a-captive was of a “long tail” nature.  As such, Mr. Rau became an expert in workers’ compensation, products liability and professional liability (including medical malpractice).   In one year, Mr. Rau was responsible for more than $2.5 million of underwriting profit within the rent-a-captive.

In 1989, Mr. Rau went to Frank B. Hall, Inc. as a vice president and consulting actuary.  While there, he continued his involvement with large corporate clients; providing for their actuarial consulting needs.  These needs included acting as the appointed actuary for their captive insurance subsidiaries, certifying their self-insured losses to both state departments of insurance and to the corporations’ outside auditors, and providing input into the corporation’s selection of the financially most advantageous method of handling their losses.

In 1999, Mr. Rau joined American Reinsurance Company as a vice president /actuary charged with the responsibility of pricing their professional liability treaty business.  Along with the typical professional liability business, which included medical malpractice.  Mr. Rau also handled D & O liability and employment practices liability insurance.

In 2002, Mr. Rau assisted Advisen, Ltd. in developing their informational product for professional liability in their insurance information system and then assisted Highlands Insurance Company with their actuarial needs and helped price their commutations during runoff.

Mr. Rau formed Actuarial Risk Consultants LLC in 2003 as a vehicle for providing reserving studies, pricing studies, cash-flow analyses, monitoring effectiveness of loss control programs and input into mergers and acquisitions for corporate clients.

 

 

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