A start up (re)insurer, headquartered in Bermuda, approached us for support with establishing its actuarial function. Our client had an ambitious growth strategy and wanted to operate a lean and efficient Actuarial, Financial and Data team, that could rely on expert consultants during crunch periods.
Our client sought our actuarial and process expertise to support them in navigating the challenges presented by Solvency II (EU/UK and Bermudan equivalent), and developing a robust, transparent and scalable process. We proposed an outsourced actuarial partner arrangement that would flex and grow to meet the evolving demands of the business and its regulators.
Dynamo built – and is responsible for operating – a full Solvency II calculation process in Psicle that meets the client’s tight reporting deadlines while producing appropriate management information for stakeholders to understand the results. The level of automation offered by Psicle enabled us to condense the Standard Formula and Technical Provision calculation process into a half day, post full data receipt; ensuring that our time could be spent collaboratively with our client where it matters most: interrogating the assumptions, the results and their impact on the business (including, for example, intra-group arrangements).
Over the past few years, both our relationship and solution have scaled to serve our client’s increasingly complex portfolio and adapt to the changing regulatory landscape. Additional entities have been brought into scope and a suite of capital scenarios and projections have been built in the Psicle model, so that the capital implications of growth and diversity can be fed quickly into business-critical decision-making.
The outsourcing of the core Solvency II processes has enabled our client to focus internally on large loss and catastrophe management – the primary drivers of their P&L – and to operate as an agile team. Alongside the quarterly Solvency II exercise, our client also engages us to provide quarterly reserve analysis support as well as ad-hoc, expert actuarial advice on a host of matters.
This year, we are working with our client to design and implement a comprehensive and granular Analysis Of Change around the existing TP infrastructure, which will give business leaders greater transparency of the material assumptions and results drivers, at entity and group level. Our client is also considering whether processes previously not touched by the solution, such as raw data manipulations and checks, can be automated, streamlined and governed within Psicle – thus bringing their internal and our consulting expertise together under a single platform.