Reserving
We have considerable experience of reserving across a broad range of classes, for Lloyd’s syndicates, specialist insurers, captives and mutuals and for a variety of purposes including solvency reserving and M&A. We also have particular expertise in the issues surrounding periodical payment orders (PPOs), and we are helping insurers to understand the sometimes complex impacts of PPOs on their business.
An insurer's ability to estimate future loss development and to understand the underlying dynamics has always been important. Getting it wrong can have dire consequences, as history has evidenced.
We work with our clients to improve the quality of their reserving and in particular their understanding of reserving uncertainty. This includes advising on improving data systems and management reporting as well as implementing techniques to supplement or improve upon traditional triangle-based reserving methods.
We are currently working with a number of insurers to re-engineer their reserving processes in line with the Solvency II technical provisions requirements and to cope with the forthcoming accounting changes from the IASB/FASB. Insurance companies' balance sheets will look considerably different once these take full effect. There is a need for improved actuarial input, better risk governance, and a clearer demonstration of understanding from management teams.
Insurers sometimes miss the opportunity to extract more value from reserving by failing to align technical provisions with what the business actually does. With the enforced changes that lie ahead, now is a perfect time to remedy that.
Client testimonial
“Good at giving a view/not sitting on the fence - particularly for an actuary!”
Insurance client
