Annual Budgeting Checklist

Export the last three policy years of written and earned premium from PolicyCenter or the AMS (Applied Epic, AMS360) by line of business and state. Reconcile against the statutory page 14 by state to catch surplus-lines premium that lives outside the admitted ledger.

Calculate prior-year retention ratio and persistency by line, state, and producer channel. A 2-3 point retention swing on a major commercial book is usually the largest single driver of the next year's plan, so model a base, upside, and downside case.

Forecast new submissions, quote-to-bind ratios, and average premium for retail agents, wholesale brokers, and direct channels. Layer in any new MGA appointments or program launches for the budget year.

Confirm SERFF rate and form filings are approved or in flight by state, and time the premium ramp to the actual filed effective date. Prior-approval states will not allow earned premium before the DOI green light.

Document filed rate changes by state and line, plus exposure-base growth assumptions (payroll for WC, sales for GL, fleet count for auto). Tag whether each state is prior-approval, file-and-use, or use-and-file so timing aligns with realistic earn-in.

Work with actuarial to project ultimate loss ratios by line and accident year, including IBNR development assumptions. Pull case reserve and paid triangles from ClaimCenter at 30/60/90-day cadences to validate.

Allocated loss adjustment expense (defense counsel, IME, expert fees) tracks claim count and severity; unallocated (adjuster salaries, claims overhead) tracks headcount. Budgeting them as a single LAE blob obscures the headcount-versus-severity drivers.

Use the cat model output (AIR, RMS) for the property book's expected annual loss. Property carriers must also confirm TRIA terrorism take-up and pricing assumptions, since TRIA is reauthorized through 2027.

Confirm the upcoming treaty year's quota share and excess-of-loss terms with the reinsurance broker. Watch for follow-form gaps where the treaty's coverage triggers don't track the underlying policy form — those gaps surface as recovery shortfalls in the next year's plan.

Reconcile to the HRIS roster by department — underwriting, claims, SIU, compliance, IT. Include open requisitions with start-date assumptions and merit/promotion timing.

Apply contracted commission rates by carrier appointment, plus any contingent or profit-sharing accruals. Confirm NY Reg 187 and CA SB 250 commission disclosure obligations are operationalized — undisclosed commissions on mid-market commercial are a recurring market-conduct finding.

Renewal costs for PolicyCenter, ClaimCenter, AMS (Epic, AMS360, EZLynx), rating engines, ISO/Verisk and NCCI data, A.M. Best, LexisNexis CLUE, MVR, and SERFF filing fees. Flag any contract renewals falling in the budget year for re-negotiation.

Cover state DOI filing fees, NIPR producer licensing and CE, NAIC assessments, anti-fraud plan filings (NY, CA, FL, NJ, OH, NM, KY, LA, MN), surplus-lines tax and stamping office fees, and the annual MAR audit. Acquired entities often inherit unfiled anti-fraud plans — confirm currency before the budget year starts.

NYDFS Part 500 and the NAIC Insurance Data Security Model Law require a CISO, annual penetration testing, biennial risk assessment, MFA on remote access (including third-party vendor VPN), and a vendor risk program covering TPAs, document destruction firms, and printers handling NPI. Budget the program at the scope §500.11 actually requires.

Run the NAIC RBC formula using projected premium, reserves, asset mix, and ceded reinsurance credit. Confirm the projected ratio sits comfortably above the Company Action Level for the budget year and any stressed scenarios.

If any scenario breaches the Company Action Level, prepare a remediation plan: surplus contribution from the holding company, additional ceded reinsurance, asset reallocation, or a Form D filing for related-party support. Coordinate with the domiciliary DOI early.

Document IBNR by line and accident year and confirm the reserve cadence in ClaimCenter (typically 30/60/90 days) is enforced. Reserve drift on long-tail lines like WC — where lifetime medical can extend retention obligations to 10+ years — is a recurring market-conduct finding.

Schedule any extraordinary dividend (Form E) or related-party transactions (Form D) under the Insurance Holding Company System Regulatory Act, including the lead-time required by the domiciliary state. Annual Form B registration is calendared separately.

Stress the plan against a 5-point retention drop, a 5-point loss-ratio increase, a 1-in-100 cat event, and an interest-rate shock to investment income. Document the impact on combined ratio and RBC.

Lock the KPIs the finance team will report monthly: written/earned premium vs. plan, loss ratio, expense ratio, combined ratio, retention, quote-to-bind, hit ratio, and DOI complaint count. Build the dashboard in the BI tool before the year starts, not after the first variance lands.

Walk the committee through the plan, scenarios, and capital action contingencies. Capture decisions on disputed assumptions in writing — disagreements that surface mid-year as variance disputes usually trace back to a verbal-only sign-off here.