In 2020, we began working with one of the UK’s largest personal lines insurers, to transform their reserving processes.
Our client was using reserving software to perform their triangle-based reserving, but there were several additional processes that were not integrated. Working with multiple different data sources and the build-up of legacy issues was placing strain on the team, for example, actuaries were manually stitching together analysis spreadsheets. The resulting inefficiency was not aligned to the team’s customer focused, value-add philosophy.
Our client wanted to lead the team through an end-to-end restructuring and automation programme, and committed to the change by putting in place a dedicated transformation team. To enable this they needed a consulting team that could identify and solve the low-level problems, whilst also maintaining a bigger picture project view, enabling the client to focus on vision and direction.
We were engaged to provide both the technology – Psicle – and the actuarial consulting expertise across the reserving processes. We challenged the granular technical specifications to help assess what was core to the reserving process and advise on best practice modelling approaches. To date, we have delivered an end-to-end reserving solution, including:
- Standard and bespoke reserving methods, with new features developed in our reserving gadget at the request of our client , for example, automated curve fitting on development factors and an auditable approach for calculating and applying inflation and seasonality trending assumptions.
- An IFRS 17 model integrated into the reserving model, along with dashboards, sense checks and visuals to support the actuaries in adapting to this new reporting basis and communicating with their stakeholders.
- Considerable data manipulation modules pre and post method application, to overcome data challenges and create standardised datasets across modelling components.
- Psicle connectors that allow the model to push datasets from Psicle out to the client’s new data warehouse, based on tightly defined data contracts and with time stamps and validation rules.
Empowered by a robust, transparent and fast model, our client can now perform monthly reserving – providing more timely and more frequent business insights that will enable business leaders to respond faster to market events and provide better value for their customers.
The Dynamo project team is currently expanding the existing model to incorporate the SII TP calculations, all within the single Psicle canvas. Meanwhile our client is:
- Exploring Psicle use cases for pricing and financial reporting, which would increase collaboration and facilitate greater knowledge sharing / feedback loops.
- Sharing their transformation journey experiences with others, to inspire and support industry progression.