Finance, risk and actuarial change

Intensifying regulations, competitive pressures and market complexity have created new urgency for insurers to optimize organizational structures. Financial pressure is also driving the need for simplification.

Improving capital efficiency and creating a resolvable structure are among insurers’ top priorities, with overall goals to maximize returns and reduce volatility.

We work with clients to develop new capabilities, including:

• Effective articulation of the “investor story” to investors and analysts
  
• Enterprise performance management and defining new metrics
• Capital and corporate structure optimization
• Insurance investments, with a focus on non-standard asset classes and more effective asset liability modeling
• Risk management focusing on hedging asset and liability risks, such as interest rate risk and longevity risk

For many insurers, finance, risk and actuarial capabilities have grown organically over time. Too often, these new structures are not agile, efficient or aligned to each other or to the business.

Finance needs to deliver an ever-expanding and complex set of requirements with reliable processes and quality in tight timelines.

Risk must effectively protect the balance sheet from unexpected risks, while adding value to business decision-making within tight cost constraints.

Actuarial is a key component of both finance and risk as well as the owner of processes to deliver reserves and capital.

We support clients in the design and implementation of:

• Fit-for-purpose finance, risk and actuarial functions capable of meeting the latest regulatory and reporting requirements
• Efficient finance, risk and actuarial functions underpinned by common data and technology
• Value-adding finance, risk and actuarial functions capable of engaging effectively with the business

Regulatory change and intervention in insurance are on the rise in many markets. Insurers and brokers face challenges in governing and controlling their businesses, managing customers (or in regulatory terms, “managing conduct risks”) and performing remediation when things go wrong.

We help insurers in four key areas:

• Assessing the effectiveness of corporate governance and control frameworks
• Developing conduct risk management frameworks and management information
• Managing major remediation exercises related to mis-selling
• Interpreting and applying regulation and legislation