A leading, global health insurer engaged us to support in the design and implementation of their future-focused, finance operating model, a global reserving and capital transformation. With regulatory timetables tightening and 10+ entities to coordinate, Group operational risk was increasing and its management had become onerous. The actuaries’ drive to deliver business insights and respond quickly to market events was being held back by their tools and processes.
Our client had a vision that would bring their 100+ actuaries together under a single Group framework, while still embracing entity specific actuarial techniques and local insurance market nuances.
Together with our client, we translated the target state design into a detailed, end-to-end specification, which utilises Psicle as well as its integrations with data warehouse, financial and reporting tools.
Our client’s first priority was to transform the reserving, Solvency II (TPs and SF) and IFRS 17 processes. We advised our client on:
- How to move from aggregate modelling to granular, member-level cashflow projections;
- New approaches for applying trending factors, to allow a better understanding of key assumptions;
- Integrating the IFRS 17 model with the Solvency II TP model, to streamline data flows and avoid replication of methodologies;
- Specific Psicle features to improve model governance and manage interactions between processes and entities;
- The development of a group reporting model that brings together the results of multiple calculations across entities and valuation periods, so that senior management can analyse and track results by solo entity or aggregated group level over time.
Our client has empowered their teams to engage with, and contribute to, the actuarial transformation journey, so that process evolution can continue long after the formal project ends. We’ve delivered global “template models” (refined with two entities), that will be adapted for other entities by in-house Psicle champions. Each entity will be able to produce results at member level – on multiple bases – and run a suite of analytics for standardised Group reporting.
With the core template models now complete, we are supporting our client in advancing the Group’s analytics capability outside of the standard actuarial processes, for example within financial planning.