Practical
support with the Solvency II Actuarial Function
Case studies
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.
How we can help
Your capital model can be a powerful tool for understanding your risk profile and making better business decisions, in addition to calculating regulatory capital.
Insurance regulation has become tougher and more sophisticated. We can help you meet regulatory requirements in a way that adds value to the business.
Data has always been the lifeblood of insurance. The recent explosion in the volume of data available to insurers provides great opportunities but will also generate more intense competition.
Reserving adequacy is crucial to succeeding in the insurance market. But some of the biggest risks to your reserves are not reflected in the historical claims data.
Risk management is at the core of the insurance business. We can help you strengthen the links between strategy and risk management, increasing your chances of business success.
Our independent validation advice helps you to use your models with greater confidence and to meet regulatory requirements efficiently.
