Case Study Three | Letting The Database Do The Hard Work

The actuarial team of a large UK insurer increased its capacity and reduced its operational risk by implementing a central data repository in its valuation process and altering its team structure.


Problem Statement

  • The actuarial team of a large UK insurer was struggling to meet the new quarterly Solvency II deadlines due too many manual steps in the valuation process

  • The reporting mechanisms were unwieldy and no centralised data source existed to control and assess the data quality

  • Further regulatory and reporting changes would also impact on the valuation processing time, and the company wanted to be prepared for this

MBE Solution

MBE implemented a central data repository for managing model points, assumptions, manual adjustments and modelled results. This enabled the client to identify and automate the key controls in the valuation process.

In addition:

  • an approval functionality was developed which allowed a full audit history of the data

  • a full mapping of the end-to-end data flow for the purposes of future-proofing, to improve visibility and to identify complexities 

  • the team structure was changed to reduce the bottle necks and hand-off points

Result and benefits

  • An increase in the number of automated tasks, resulting in an increase in the capacity of the teams, including high value resources

  • An increase in the accessibility of the data and the visibility of controls

  • Visual management has ensured that the focus has remained on the key operational issues

  • A reduction in operational risk due to the increased traceability and auditability of the data

  • A reduction in future maintenance of the data system

  • An increase in the overall scalability of the valuation process, giving greater scope for future expansion, for example IFRS 4 Phase II implementation

 



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