Actuarial reserves comprise a significant portion of the liabilities of insurers and pension schemes. Our team assists clients in the valuation of their actuarial reserves in order to ensure that these reserves are adequate to meet future claims emergence and benefit obligations. We also offer advice on the appropriateness of the client’s asset-liability match and help them determine which classes of business provide better business returns.
Accounting standards change
Working closely with our CMAAS teams, we support clients in digesting and simplifying the technical application of IFRS 9 and IFRS 17. IFRS 9 requires a fundamental change in the way firms need to provide for their impairments; our team is skilled in supporting clients develop tailored yet cost-effective models to do just that. IFRS 17 is a transformational change for insurance companies particularly with the move to new measurement models; our team supports clients in understanding the data requirements, modelling implications and reporting requirements for the new valuation methods.
Capital regulations of financial institutions are becoming ever more complex with a focus on ensuring that players have the right amount of capital to support their business risks. We support financial services clients in complying with the latest capital regulations in all the territories they operate in and advise them on the principle drivers of their risk based capital requirements. This insight is invaluable to clients as they make their business planning decisions and ensures efficient capital allocation.
Embedding risk management is a journey. We assist clients in articulating their risk appetite statements and query whether their current business models are aligned to the risks they face and the resources available to them. In addition, we help clients optimise their business model by performing detailed scenario analysis on the levers they can push and pull e.g. reinsurance structures for insurance companies.
Actuarial function effectiveness
Actuaries are becoming even more integral to financial reporting and capital planning in financial institutions. We therefore support clients in building the requisite skills of their internal actuarial teams through training events and secondments. This ensures that the teams are well prepared for the expected transformational changes (IFRS 17, IFRS 9 and Risk Based Capital) and can also help drive the profitability of the business through risk analytics.