Solvency 2 Actuarial

We have expertise and experience in a wide range of services, including risk & capital, reserving, pricing, investment modelling, and data analytics.

Capital

We have managed the end-to-end implementation of several internal model approval process (IMAP) programmes, and have observed how the required standards have evolved over time. Each and every firm we have assisted has successfully received internal model approval. We have managed IMAP programmes in the UK and abroad, developing strong regulatory relationships and tailoring our working style to the different approaches across different countries.

Internal Model Approval Process (IMAP)
IMAP is a long journey. We have managed the end-to-end implementation of many IMAP programmes. We have expertise in all aspects, including programme management, model scope and design, model built, methodology and calibration, data, systems & IT, model use, model governance, policy frameworks, the Common Application Package (CAP), model validation and documentation. We also have experience with major model change applications and model scope extensions.

Model Development
Stochastic capital models are often complex with many interdependent components. We have the skills and experience to build, parameterise and deploy models on all commonly used platforms. Our expertise covers all risk areas, including Insurance Risk, Market Risk, Credit Risk and Operational Risk. We have also built bespoke models for unique risks that a company can face.

Independent Validation
A complete and credible independent validation process is one of the key requirements for Solvency II internal models. Over several years, we have developed a validation process which can be tailored to any company. We can be your external validator or help you develop your own in-house validation process.

Pricing

With advancement in data science, changing regulatory landscape and stringent competition, the demand for actuarial support for both personal and commercial lines pricing has increased significantly. We can assist you with all aspects of the pricing process from data preparation, building and deployment of the rating engine, development of the user interface, and underwriting strategy.

Pricing Transformation
We have managed complex pricing transformation programmes for large multinational insurers. This can be as simple as a platform change, with more and more companies looking to enjoy the flexibility of open-source platforms rather than traditional proprietary software. More complex projects have involved a complete overhaul of the current pricing models, including the development of a standardised global pricing tool with subsequent regional customisation.

Pricing Modelling
We have experience in working with various statistical and actuarial software, as well as open-source platforms. Our technical pricing expertise ranges from simple 1-2 way analysis to more complex Generalised Linear Models (GLM). We can adapt our techniques to your data, and where required supplement your data using external sources to enhance the modelling capability. Machine learning techniques can be used to allow a more flexible approach, whilst still keeping interpretability and explainability.

Pricing Review
We can provide an independent pricing review using our own framework or an existing in-house framework. The review can focus on specific aspects or cover the end-to-end pricing process. We can identify pragmatic solutions towards pricing best practises.

Reserving

We have expertise in all aspects of reserving. We can help with the implementation of new and innovative reserving techniques and also provide an independent review and challenge of reserves, M&A advice and Lloyd’s Statement of Actuarial Opinion.

Reserve Implementation
We can help you quantify reserves and reserve uncertainty – whether for Solvency II, IRFS 17 or other purposes, and build and review processes and models. We are experienced with all reserving methodologies including:

  • Triangular based reserving methods
  • Exposure based reserving methods
  • Individual claims based reserving methods
  • Stochastic reserving methods
  • Technical provision calculation, including risk margin

Reserve Review
We can assess your reserving process against industry best practice and suggest areas of improvement. We don’t just assess your reserves, but also offer advice on other aspects of your process, including adequacy of controls and automation.

IFRS17

Our experienced practitioners design and deliver large scale and complex changes needed for IFRS17 transformation project. Our multi-disciplinary approach, combining experts from actuarial, finance, risk, technology and data management, ensures development and delivery of solutions required to meet business objectives. We can provide support for:

  • Gap analysis
  • Financial impact analysis
  • Implementation of finance transformation projects
  • Premium Allocation Approach (PAA) eligibility modelling
  • Risk Adjustment
  • IT infrastructure

Risk

We have developed a range of solutions to understand risks and support better business decision-making. We can help you in designing, implementing and reviewing all aspects of your risk management framework, including:

  • Own risk and solvency assessment (ORSA)
  • Risk identification and risk register
  • Risk appetite framework
  • Governance framework
  • Control framework
  • Risk policies
  • Stress and scenario testing
  • Reverse stress testing

Investment

Insurance companies are continuously looking for ways to advance their investment strategy. We can help you with the development of:

  • Asset-liability management (ALM)
  • Hedging programmes
  • Strategic asset allocation
  • Efficient frontier analysis
  • Derivative pricing
  • Risk appetite framework
  • Illiquid asset - origination, management and credit rating