Actuarial and insurance

Managing the increasing demands of the insurance industry

The insurance industry is constantly evolving – there’s ever-increasing competition, regulatory requirements, product complexity and economic uncertainty. This has led to a growing demand for actuarial consulting services globally. Our actuarial practice provides a wide range of services to help your organization manage these demands.

How we can help

Our Actuarial, Rewards and Analytics practice in Ireland has grown in recent years and is now one of Ireland’s leading actuarial service providers. Our team of actuarial professionals provide expertise and advice to life and non-life insurance and reinsurance companies operating in both the domestic and international markets. Our senior actuaries have a blend of consulting and industry experience including considerable experience of operating at leadership level with a diverse range of insurance and reinsurance companies.

What sets us apart from our competitors are the close associations we have with our colleagues in enterprise risk services, audit, management consulting, tax, corporate finance and corporate and legal services, which enables us to develop end-to-end solutions for our clients.

As part of one of the world’s largest actuarial practices, we have access to over 800 actuarial professionals worldwide which ensures that we can secure the specialist knowledge and expertise our clients require.

Our services span all phases of an insurer’s development and, at each stage of our clients’ life cycles; we offer a full range of actuarial services including:

  • Revenue generation and analytics
  • Solvency II
  • Risk management services
  • Traditional actuarial services
  • Market entry / exit and restructuring
  • Operational excellence
  • IFRS 4 Phase II
Financial Reporting Advisory solutions | Deloitte Ireland | Audit

Revenue generation and analytics

Data opportunities and tougher market conditions are driving the need for the insurance industry to look at data analytics. Using data intelligently, an insurer can extract insights that guide decision-making and achieve better results at every point of the customer life cycle, from market segmentation, pricing, cross selling, adding customer lifetime value and retention modelling.

Analytics uses advanced statistical techniques to analyse large quantities of internal and external information to unlock previously unknown, but meaningful, business relationships allowing clients to significantly improve profitability. Analytics has a wide range of applications including:

  • Maximising conversion rates by gaining insight to customer and agent behaviour
  • Maximising profitability by understanding the price elasticity of different customer/agent segments
  • Increasing profitability by focusing underwriting resources on more complex risks
  • Increasing the likelihood of successful cross-sell by targeting marketing resources more effectively
  • Improving customer experience by selling the right product, at the right time, through the right channel
  • Minimising lapses / optimising renewals by understanding key persistency drivers

Solvency II

The challenge of implementing Solvency II calls for a multi-disciplinary approach. At Deloitte, we are able to provide the required breadth of service expertise that ensures all aspects of Solvency II requirements and opportunities are considered and we can support you through the entire process by providing services including:

  • Implementation or independent review of your ORSA
  • Capital modelling:
    - Complete or partial set-up of internal or standard models
    - Packaged standard formula model solution, including production of Quantitative Reporting Templates (QRTs)
    - Review / validation of standard formula and internal models
  • Actuarial function services on a support or fully outsourced basis, including:
    - Calculation of technical provisions
    - Opinion on the overall underwriting policy
    - Opinion on the adequacy of reinsurance arrangements
  • Process, data, documentation and system improvements as required to meet Solvency II requirements
  • Tailored training for Boards, management and staff
  • Project management

Risk management services

Following the global financial crisis, the focus on improved risk management has been growing. Whilst changes have been implemented, there are still significant opportunities for (re)insurers and other financial institutions to strengthen their risk management processes.
With our expertise, we can help your company keep on top of emerging changes in regulation and developments in risk management practices across the market.

Our actuarial and risk professionals can help:

  • Design or review your:
    - Risk management framework
    - Risk appetite statement
    - Risk policies
    - Risk limits
  • Create value by optimising capital allocation and proposing appropriate risk response strategies
  • Assess and improve the risk culture within your organisation
  • Act as, or provide support to, your risk function including provision of a Chief Risk Officer (“CRO”)
  • Provide tailored risk training programmes

Traditional actuarial services

The insurance industry is constantly evolving – there’s ever-increasing competition, regulatory requirements, product complexity and economic uncertainty. Our actuarial practice provides a wide range of services to help your organisation manage these demands. We’re a team of experienced actuarial professionals dedicated to adding value to our clients’ organisations through practical, timely solutions. Our topical market knowledge of the insurance industry, our actuarial background and knowledge of the financial framework and accompanying processes helps our clients achieve their goals.

Our services include:

  • Product design and pricing services in the life and non-life areas
  • Reserving, financial management and analysis
  • Modelling services
  • Internal audit

Market entry / exit and restructuring

By combining our skills with those of our corporate finance and Legal colleagues, we can advise insurance and reinsurance companies seeking to enter the Irish market on the:

  • Regulations and (re)insurance laws that apply
  • Preparation of the (re)insurance licence authorisation application for submission to the CBI
  • Features of the Irish market - competitors, product data, product design, pricing and product strategy – through conducting market research

Through our restructuring expertise, we can address concerns for both the buyer and seller and we can assist senior management in identifying key risks and, making informed decisions about their restructuring strategy. Working on either the buy side or sell side we provide full valuation services, Independent Actuary reports as required for portfolio transfers under Section 13 and due diligence reports.

Operational excellence

By combining our skills with those of our Management Consulting colleagues, we bring solutions to our insurance clients that improve the operational efficiency and effectiveness of their businesses, through:

  • Finance transformation programmes
  • Reviewing the effectiveness of finance and actuarial functions, including model efficiency and rationalisation
  • Providing insights on your operational results through the use of analytics
  • Providing advice on vendor software packages

IFRS 4 Phase II

IFRS 4 Phase II aims to introduce a single IFRS accounting model for all insurance contracts that is transparent and aligned as much as possible with the general IFRS accounting of other industries.

The changes proposed will affect the manner in which insurance profits are realised over the life of a contract, which (re)insurers need to understand because:

  1. Dividends are paid out of profits, so changes to the amount of distributable profit available each year will impact the amount of dividends that can be paid to shareholders.
  2. Profits are also used for reinvestment in the business; deferring profit affects investment activities (M&A, for example)

IFRS 4 Phase II provides (re)insurers with general principles and flexibility on their implementation. Therefore, the choices that the (re)insurer makes will impact how profits are released over the life of a contract. At Deloitte, we can enable you to:

  • Develop a better understanding of the IFRS changes and the impact on your business
  • Make decisions on implementation choices based on robust financial information
  • Highlight the areas of your business that will be most impacted in order to prioritise efforts
  • Strengthen your business case for internal IFRS project funding