A large energy company was designing a group-wide digitalisation programme. Our client – its captive – seized the opportunity to minimise the operational risk stemming from manual, complex, spreadsheet analysis and gear the company towards making better, data-driven, strategic decisions. They engaged us to provide expert advice on the digitalisation of internal data processes and to develop a robust and insightful capital projection model.
Psicle was the ideal solution for our client due to the modelling flexibility that it offers and its ability to handle large datasets from various sources, in a structured and well governed manner. The project initially included:
- Digitalising the premium and exposure processes to improve speed, governance and transparency, and reduce operational risk;
- Creating a dynamic capital model to calculate the SCR and Own Funds, and the solvency ratio between quarterly regulatory submissions; running scenarios and projections to use as a basis for decision making.
The success of the initial model implementation inspired our client to explore the application of Psicle more broadly. Together we’ve transformed the dynamic capital model into a dynamic financial model that projects and runs financial scenarios and produce results for the Balance Sheet and Income Statement. Using one model to project the TPs, SCR, Own funds and financial statements ensures that consistent assumptions are applied across various aspects of presentation and decision making.
The model outputs are pushed to interactive dashboards, in which we’ve curated different views for our client’s different audiences, used for reporting and decision making at both Captive and Group level. The Psicle model and corresponding dashboards have streamlined the ORSA process; providing business insight and facilitating greater strategic thinking.
This year we are working with our client to:
- Further the digitalisation of workflow and captive management processes, including connecting Psicle with MS Teams and embedding improved governance and controls.
- Refine the assumptions applied within the financial model, with Dynamo combining our international experience with local market expertise to offer independent counsel.