Case Study One | Process Re-engineering Creating Value

An international reinsurer reconfigured its Embedded Value process to reduce annual results production time from nine weeks to five and shift the team’s culture to one of communication and continuous improvement.


Problem Statement

  • The valuation team of an international reinsurer was struggling to meet its deadlines and was having to make many manual adjustments and late amendments to figures. 

  • This was especially concerning in the lead-up to Solvency II implementation, when deadlines would be even earlier than internal deadlines.

MBE Solution

A re-engineering project was launched involving five elements:

  1. Improving the collection of the data and assumptions from the various systems that fed into the Embedded Value (EV) process.

  2. Creating a timetable of the processes by which the EV numbers are produced.

  3. Updating the system to deal with quarterly, as opposed to annual, projections.

  4. Developing more efficiency output tools, for better (standardised) analysis of the figures. 

  5. Upgrading of the modelling process, by moving actuarial models from legacy systems to the MoSes modelling platform. 

MBE Approach

Having mapped out an optimal solution, MBE implemented the following steps:

  • Produced a visualisation of the process to understand the process and reveal 'hidden dependencies', allowing the client to remove inefficiencies

  • Removed bottlenecks in the input stage by automating data conversions 

  • Created cleaner routines for producing the quarterly reports

  • Built a new database that would store both the output and the input data, and give the client the flexibility to scale-up and collect more information

Results and Benefits

  • Reduction of annual results production time from nine weeks to five weeks

  • Reduction of late adjustments from six in one year to two the following year

  • Improvement of EV analysis reports to include more detail and explanation

  • Meeting of deadlines, less overtime and more time spent on analysis

  • Shift in culture to one that encourages communication and continuous improvement

What we liked about MBE

"MBE brought technical knowledge of Moses and modelling, and a big emphasis on process," explains the head of the life actuarial team. "I think other actuarial firms maybe haven't cottoned onto the importance of efficient process. If you can't change your people, your tasks or your tools, you can still do an awful lot by looking at each step in your process."

"We also needed MBE to work with several small teams, they were very flexible in how they worked. Other consultancies may have struggled with that."

"Overall it was a positive experience and we are already working with MBE on another project."

 



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