How we supported a client to meet the requirements for a Solvency II Head of Actuarial Function in a way that allows them to develop their internal capabilities over time.
The background
Our client was a niche insurer with a small internal management team including an actuary. The challenge was to support the client’s needs to meet the new requirements of Solvency II, while at the same time building up the client’s internal expertise and controlling costs.
Our solution
Rather than provide a full external Actuarial Function service we worked with the client’s internal actuary to design the level of support provided. For example:
- We provide the Head of Actuarial Function (HoAF), who worked with the internal actuary to design a practical reserving solution to meet the company’s needs
- The internal actuary produces the draft technical provisions and deals with all data related issues, ensuring that the HoAF’s input is used only when necessary
- The company performs all of the technical ORSA projections and seeks the HoAF’s input on issues like the design of the projection model and the stresses to be applied in the ORSA.
- The level of support provided can evolve over time as the client’s internal capabilities mature.
The results
Our client subsequently added a junior to their internal actuarial team and was able to meet a regulatory requirement while growing its internal capabilities. The level of support we provide can continue to evolve in a way that best meets the client’s needs.
