Reserving hasn’t been a hotbed of innovation in an insurance industry that increasingly embraces it in many other aspects of business. The time and opportunity for change is here.
Why do we say that? Quite simply, because through our work across the market, we see the opportunity cost of not recognising reserving as a critical part of business intelligence and performance is rising.
The time is right for more process and technological innovation in the reserving process with two end goals in mind: control and efficiency; and value.
In a series of five articles posted over the coming weeks, including a concluding case study, we will look at the current state of play with reserving processes in insurance markets, what we see as emerging best practice, two alternative methodologies for making reserving process improvements (fix and shift; shift and fix), and the combined reserving transformation considerations of people, processes and technology.