Actuarial services that enhance performance. Insurance PRECISE. PROVEN. PERFORMANCE.

Transcription

1 Actuarial services that enhance performance Insurance PRECISE. PROVEN. PERFORMANCE.

2 Today s challenges, tomorrow s opportunities In today s ever changing insurance market, companies face more stringent regulation and there is an increasing emphasis on levels of capital and risk management, forcing companies to look more closely at the way they run their business to remain both competitive and compliant. Moore Stephens provides a full spectrum of actuarial advice and support, and incorporates advanced business practices and market leading technology to deliver a range of actuarial and analytical solutions which encompass all areas ranging from pricing to reserving to business planning, forecasting and stochastic modelling, and capital and financial modelling. 2 Insurance

3 Tailored actuarial services Our highly experienced team of experts offer a range of tailored and fully integrated actuarial services to the insurance industry. Pricing In an increasingly competitive market, with insurers battling against economic and regulatory headwinds, it has never been a more important time to focus on pricing and profitability. Technological developments in recent years provide powerful tools to help the modern day insurer to navigate turbulent times and stay ahead of the game. Moore Stephens has considerable experience of pricing across a broad range of classes and territories, for both insurance and reinsurance business. In additional to our technical and commercial expertise, we have an extensive knowledge of prevailing and emerging issues specific to both the classes of business and the domiciles being underwritten. We have pricing experience across classes of business such as: employers liability/workers compensation commercial property marine (hull, cargo, specie, liability, energy) public liability professional indemnity medical malpractice D&O commercial motor We offer a full range of actuarial pricing services, including: the development of sophisticated rating tools that can be used and managed by client actuaries and underwriters. Our tools are flexible and enable powerful actuarial analysis to be performed, whilst also providing dynamic links to reserving, capital and management information functions; technical pricing expertise and solutions, based on actuarial exposure and experience rating methodologies; building exposure curves tailored to the business; recommended enhancements to exposure management (for example, revision to aggregate deductibles, reinstatements, etc.); secondments to fill resource gaps during peak renewals and to train client actuaries on technical pricing practice; independent peer reviews of individual risks, either on an ad-hoc basis or as a regular service forming part of our clients underwriting process; benchmarking clients technical pricing practices against their peers and the market; actuarial advice on insurance and reinsurance contract design and terms. We advise on the structuring of delegated underwriting arrangements and oversight; combining market leading technology with our actuarial and commercial expertise to help our clients develop underwriting and management information systems to meet business needs; actuarial reviews of the pricing function and underwriting processes, including technical pricing methodologies and assumptions; actuarial support for our RuleBook tool. Meaningful analysis of the historic experience of the business allows for a deeper understanding of exactly what makes the business tick. Insurance 3

4 Claims reserving It has always been important for an insurer to be able to estimate future loss development and the key drivers of claim experience. Actuarial analysis can help insurers unlock frequency and severity trends, and better understand the drivers of past and future claims experience by relating statistical evidence to underlying real-world issues. We offer actuarial reserving services including: assisting in the development of our clients reserving processes and associated policies. We build flexible and easy to use models, with dynamic links to other disciplines such as pricing and capital modelling; building stochastic reserving models to help insurers quantify the uncertainty around the reserves and communicate this uncertainty to management and key stakeholders; providing an independent review of reserves, and benchmarking relative to clients peers and the market; helping to monitor emerging experience relative to expectation and to the market; assisting with technical provision calculations and associated documentation. Capital modelling and risk management To ensure financial soundness of the business and fulfil regulatory requirements, insurers need to align the amount of capital that they hold more closely to the specific risks they face. There is pressure to demonstrate compliance and capital adequacy so companies need to constantly be aware of premium income and rates, claims, expenses, investment performance and a number of other factors. Expert judgement combined with meaningful analysis of the historic experience of the business allows for a deeper understanding of exactly what makes the business tick, which areas are a cause for concern, and which need to be modified to ensure the company s continued success. Our models are flexible, easy to use and closely reflect our clients business and the outlook for the future. We have many years experience in helping insurers to assess the adequacy of capital resources and help determine the optimal amount of capital needed to both satisfy regulators and achieve business ambitions. Solvency II and regulation We offer implementation and assurance services across all 3 pillars for firms using either the Standard Formula or Internal Models. We provide specialist advice on the interpretation, implementation and implications of regulatory changes. We are focused on helping our clients adapt to regulatory changes and maintaining competitive advantages. We work with companies to review what they have, suggesting more structured solutions and then demonstrating consistency and transparency with full documentation. 4 Insurance

5 Reinsurance planning and negotiation Reinsurance and alternative risk mitigation techniques are a vital component of managing the risk, profitability and solvency of our clients businesses. We provide actuarial advice on developing optimal outwards reinsurance strategies, on both a treaty and facultative basis. We consider all key factors including the risk/reward trade-off, specifically tailored to the risk profile and tolerance of our clients. We help our clients tailor the terms & conditions of their reinsurance programmes to obtain the best possible value from their reinsurance arrangements, whilst benefiting from the technical support and additional services that reinsurers can provide. We help build relationships with reinsurers and reinsurance brokers, by focusing on communication and helping our clients to demonstrate that the business risk management and underwriting is proactive and well-run. We pre-empt potential issues and help our clients appease reinsurer concern to obtain the best value from their reinsurance arrangements. Where appropriate and given market conditions, we also suggest the use of alternative risk mitigation techniques and the use of contingent capital to meet our clients needs. Insurance 5

6 Other services Transactions and restructuring We provide actuarial advice and support with mergers, acquisitions and disposals including due diligence work. We also help clients to identify problem areas of an account and provide actuarial advice on different exit strategies, including commutations, scheme of arrangements and Part VII transfers. We provide advice to insurers to assist with restructuring, strategic reviews, maintaining operational effectiveness and providing run-off services. Predictive analytics and data mining Unlocking patterns hidden deep within your data can reveal a mine of valuable business information. Moore Stephens can help you to find and exploit these hidden opportunities. We help: find natural groupings of customers or policies sharing similar characteristics, including potentially similar requirements and behaviour; understand relationships between different characteristics of your data; highlight exceptions including those which may indicate a higher risk of fraud; complete missing data using rules learnt elsewhere; project forwards using identified trends and relationships. 6 Insurance

7 Real business benefits We enable the client to focus on whichever aspects of their business they consider most critical at any given time and provide the competitive edge needed in today s global markets. Key benefits include: greatly enhanced insight into the likely future of the business; identification of the major areas of risk and impact, opportunities and efficiencies; understanding of relationships between different business areas; focusing of business monitoring where it is needed most; integrated solutions provide seamless processes; use of management information tools allows users to browse the future, not just the past; modelling based on optimal mix of insurer s own experience, industry benchmark data, and expert judgement; actuarial support, where required, for Moore Stephens RuleBook for Pricing solution; integration with the complete business process. Skills and experience Our level of involvement can be as little or as much as you need. We can enhance your in house team and resources, working on specific projects or providing assurance that your existing processes and models are appropriate. Alternatively, we can provide a fully outsourced, independent team of specialists to provide your actuarial function. Our dedicated team of professionals has a broad range of skills and a depth of experience. We combine actuarial, assurance, accounting and technology capabilities with a deep knowledge and understanding of insurance to provide a customised service tailored to clients individual needs. Technological advances provide a firm foundation such that it is easier than ever for insurers to address issues and build long-term solutions. Insurance 7

8 Moore Stephens and the insurance industry With nearly a century of experience in providing services to the sector, it is probably not surprising that we are viewed as one of the leading advisors to the industry. Our dedicated Insurance Industry Group continues to expand, not only in terms of size but also in the services and expertise we offer. Insurance is a truly international industry. The Moore Stephens International network covers many of the world s key insurance locations, including New York, Bermuda, Hong Kong, Luxembourg, the United States, Russia, Australia, Costa Rica, and, of course, London, which is also the head office of Moore Stephens International. In total, Moore Stephens International Limited has 630 offices of independent member and correspondent firms in 100 countries, involving over 20,000 partners, principals and staff, with worldwide turnover of US$2.3 billion. Member firms subscribe to common membership terms, which include common auditing standards for assignments undertaken in the Moore Stephens name and regular quality assurance reviews. They share common values: integrity, personal service, quality, knowledge and a global view. You can, therefore, be confident that we have access to the resources and capabilities to meet your needs. As a firm with a significant international client base, planning, controlling and working with Moore Stephens International member firms on multi-jurisdictional assignments is a key element of our offering. The scope of our services to clients with international operations extends, therefore, beyond the delivery of compliance services to advising on international business structures and tax issues to deliver solutions for cross-border transactions. Contact information If you would like further information on any item within this brochure, or information on our services please contact: David Edison Partner David is Head of Moore Stephens actuarial team. He has over fifteen years experience developing the firm s actuarial and statistical offerings, and helping many non-life insurance clients with a range of consulting and assurance services. He also has many years experience in claims reserving, capital modelling, stochastic modelling and Solvency II-related work. David works with a number of non-life insurance clients, including the Lloyd s and London Market, mutual and commercial insurers and reinsurers, both in the UK and internationally. T +44 (0) [email protected] Jay Ramessur Senior Manager Jay joined Moore Stephens from the Lloyd s market to further develop our pricing offerings. With significant experience of pricing across most lines of insurance and reinsurance, in most risk domiciles and all types of reinsurance, Jay is responsible for all aspects of pricing and peer reviews, as well as pricing models. Jay oversees the actuarial development and support of Moore Stephens RuleBook for Pricing solution. He works with a growing number of clients within the Lloyd s and London market, as well as for commercial and mutual insurers, and for reinsurers. T +44 (0) [email protected] Moore Stephens LLP, 150 Aldersgate Street, London EC1A 4AB T +44 (0) We believe the information contained herein to be correct at going to press, but we cannot accept any responsibility for any loss occasioned to any person as a result of action or refraining from action as a result of any item herein. This brochure is not a substitute for professional advice. Printed and published by Moore Stephens LLP, a member firm of Moore Stephens International Limited, a worldwide network of independent firms. MSIL and its member firms are legally distinct and separate entities. Moore Stephens LLP is registered to carry on audit work in the UK and Ireland by the Institute of Chartered Accountants in England and Wales. Authorised and regulated by the Financial Conduct Authority for investment business. DPS22821 November 2013