Since 2010 we have supported non-life insurers, Lloyd’s syndicates and their auditors with both business-as-usual and deep-dive actuarial projects, with senior actuaries on every engagement.
Reserves are the single largest item on an insurer’s balance sheet. It is therefore critical that firms have robust and resilient processes in place to set reserves.
Equally, many projects require a clear understanding of reserve estimates, what they represent and how to assess and interpret actuarial reports.
We have experience in looking at a wide range of reserves and have an efficient and effective methodology for independent review and challenge.
Under Solvency II, firms wanting to set their regulatory capital using a full or partial internal model, or to make use of undertaking specific parameters in their Standard Formula calculations need model validation.
Through many years of carrying out model validation for firms large and small, we have an effective and efficient approach to designing tests, challenging results, and communicating findings to boards and senior management.
Not only have we experience of validating a wide range of models, we have also reviewed many internal models (approved and unapproved) through our Part VII transfer project experience.
“The Marcuson team seamlessly joined for phase 2 of a difficult validation project and delivered outcomes demonstrating robust technical understanding and diligent underlying work. I wouldn’t hesitate to work with them again.” – client CFO
We can help you design, build, parameterise and implement your internal capital model for Solvency II or your economic capital model for other purposes (eg to support underwriting and reinsurance decisions). We can also deliver effective training to your board on the operation and use of the model.
Leveraging on our thorough understanding of Solvency II and extensive experience in all core actuarial areas (reserving, capital modelling, pricing and risk management), we are ideally placed to assist you with your actuarial function.
You can rely on our well-balanced team and outsource your actuarial function to us. We can also help to design your actuarial function, provide independent assurance surrounding its operation, or provide independent peer review of your Actuarial Function Report.
Leveraging our expertise in reserving, capital modelling and expert knowledge of audit processes, we can provide actuarial support to audit firms that are auditing UK and Gibraltar insurers.
We can build and review your pricing models and frameworks, including integrating them with your other actuarial systems and processes. Our intimate knowledge of most lines of business, coupled with our wider independent research, can help you keep abreast of best practice tools and techniques.
We are experts in risk modelling, understanding the qualitative and quantitative processes that feed ERM frameworks and the way to design output management information to achieve effective board decision-making. We understand how to make the most out of the interaction between risk and actuarial functions, and can help you design optimal structures.
Case studies
Our client, a large Lloyd’s managing agency / plc asked us to design and lead the initial delivery of a board training programme on Solvency II. This involved four distinct phases:
ReadOur client, a small Lloyd’s managing agency within an international re/insurance group was struggling to get business engagement with the output of their newly-built capital model. They asked us…
ReadWe carried out a comprehensive independent review for a large Lloyd’s managing agency writing a broad mix of property and casualty direct and reinsurance business. Features of our approach were:
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