We have seen Actuarial Functions faced with a number of challenges, including:
- Shortening regulatory and internal timescales and deadlines
- Lack of regulatory guidance and feedback
- Limited Board engagement whereby the actuarial function is seen as purely a regulatory function rather than adding value
As a result, clients are seeking advice and support in respect of their Actuarial Function, which is delivering the following benefits:
- Enhancing the systems of governance through identifying how the Article 48 work could add more value to the Board.
- Identifying gaps in current processes against the Article 48 regulatory requirements.
- Providing comparisons to current and emerging market practice.
- Identifying areas of improvement in the existing Actuarial Function framework.
- Improving efficiency of BAU processes, in order to focus future efforts to areas of added value.
- Providing information to develop a roadmap for the future state of the Actuarial Function.
- Identifying potential technologies to improve process automation.
Here at Willis Towers Watson, we have acquired deep knowledge of the Actuarial Function requirements, developed our own views and processes to carry out associated work, and are familiar with how the market approaches meeting the requirements. We also have a dedicated Actuarial Function product development team keeping abreast of market developments.
This experience puts Willis Towers Watson in an ideal position to support and advise our clients in respect of their actuarial functions.
As part of our comprehensive suite of services to help meet the requirements of Solvency II and, in particular, the Actuarial Function, we also offer clients a high level review and benchmarking service which aims to provide insight to help:
- Identify areas of improvement in your current set-up and processes;
- Bring you into line with emerging market best practice;
- Help make your actuarial processes more efficient; and
- Enable you to identify new ways to add value.
Developing market practice for UK P&C Actuarial Functions
As we saw in the “Dear Chief Actuary” letter, published in February 2018, the PRA considers the Actuarial Function to be an integral part of the systems of governance.
We conducted a comprehensive survey of Actuarial Functions in UK P&C insurers and reinsurers. We conducted a comprehensive survey of Actuarial Functions in UK P&C insurers and reinsurers. Highlights from the survey can be found in our article, “Developing market practice for UK P&C Actuarial Functions”.
Respondents said that, in the past, technical calculations had been where most value was added. However, it is also clear that this focus is set to change, with underwriting, reinsurance and risk management considered to be areas where actuaries will be expected to add a marked increase in value going forward, alongside efficiency. How are they going to live up to and deliver on these expectations?"