PROPERTY/CASUALTY

Services in the area of property and casualty insurance are provided by BELTIOS P&C GmbH, a separate entity independent from BELTIOS GmbH.

BELTIOS P&C’s main focus is on the classical non-life actuarial areas of

  • Reserving
  • Risk modelling
  • Pricing

as well as the processes and workflows related to these activities. Our clients include primary insurers, reinsurers and captives.
Regulatory regimes such as Solvency II or Swiss Solvency Test (SST) require actuarial valuation and risk modelling to be integrated into risk management as well as accounting and reporting processes. In a constantly changing environment, new challenges keep arising, for instance related to IFRS 17. We at BELTIOS P&C support our clients both on the actuarial side and on the embedding of new processes into the landscape within the actuarial department and beyond.

Similar risk-modelling techniques can be applied to the benefit of medium-sized and large industrial enterprises in order to analyse the existing insurance programme, define the risk appetite and test alternative insurance scenarios for optimisation. A meaningful use of actuarial methods requires a certain amount of claims experience as data basis, i.e. a history of a certain number of individual losses. We assist our customers throughout the entire implementation, starting from the conceptual phase and establishment of data sources and ending with the model calibration and management reports.

Our clients benefit from the comprehensive experience of an established team and our focus on technically sound and customised solutions.

MATHEMATICS AND RISK MANAGEMENT

The classical topics of claims reserving, risk modelling and pricing are essential actuarial tasks in the insurance industry. Small and medium-sized companies as well as large insurers and groups increasingly aim to leverage actuarial models to obtain maximum business value added. A key requirement for this to happen is the communication with non-actuarial departments and the embedding of actuarial work into the company’s processes and system landscape.

To overcome the related challenges we offer support in the following areas:

Actuarial claims reserving

  • Independent reserve reports
  • Methodological trainings
  • Deterministic and stochastic analysis
  • Implementation of a reserving process including interfaces, validation and documentation
  • Use of latest mathematical methods of reserve estimation at the level of individual claims
  • Software Tool

Valuation of insurance portfolios

  • Actuarial service in the context of M&As and loss portfolio transfers, as well as for RI commutations
  • Valuation of technical provisions
  • Valuation of new business using actuarial models

Pricing of retail, commercial and industrial business

  • Product and rate development
  • Review of existing rating
  • Introduction of new products
  • Experience working with various rate-development software platforms

(Partial) Internal risk models

  • Methodology and design
  • Implementation
  • Calibration
  • Documentation
  • Support
  • Independent validation
  • Further development of existing models
  • Experience working with various risk-modelling software platforms such as WTW Igloo, ReMetrica, PillarOne, @Risk, SAS
  • Using the risk model to support business decision-making

Reinsurance optimization

  • Analysis of the existing reinsurance programme
  • Technical pricing and evaluation of alternatives
  • Testing and documenting the transfer of risk for complex treaties

Regulatory requirements

Solvency II / Swiss Solvency Test

  • Standard formula and solvency balance sheet
    • Application for approval of the use of undertaking-specific parameters (USP)
    • Calculation of technical provisions
    • Approximations and simplifications
  • Actuarial function (AF) for insurers and reinsurers, appointed actuary (P&C) in Switzerland
    • Act as external function-holder
    • Validation of technical provisions
    • Actuarial support of related analyses
  • ORSA
    • Test and document the appropriateness of the standard formula
    • Develop models to obtain an internal view of risk
    • Multi-year projections
    • Analyses of scenarios
  • Certification of internal models
    • Gap analysis of existing models, also in preparation of an internal-model approval process (IMAP)
    • Enhancements of existing models
    • Design, methodology and implementation of the P&L attribution
    • Support during the IMAP process
  • Methodology support, discuss all model-related questions

IFRS 17

  • Methodology and design
  • Support during the implementation

Insurance support for industrial companies and captives

  • Actuarial support of all related analyses and risk models
  • Definition of risk appetite and selection of suitable risk measures
  • Evaluation of existing programme and review of alternatives
  • Consideration of constraints such as those related to solvability and rating.

STRUCTURES AND PROCESSES

The implementation of meaningful and coordinated structures and processes is essential for a successful integration of actuarial analyses and models within the company. BELTIOS P&C offers support in the design and implementation as well as related activities, for instance the introduction to non-actuarial departments and the development of reporting processes.

We support you in areas such as the following:

Regulatory requirements

Solvency II

  • ORSA
    • Design and implementation of an ORSA process and embedding into the structural and process landscape
    • Review and further development of existing ORSA processes and reporting
  • Supporting part or all of the Solvency II reporting, also in cooperation with SolvencyTool (www.solvencytool.com)
  • Actuarial function (AF) for insurers and reinsurers, appointed actuary (P&C) in Switzerland
    • Supporting the design, implementation, and embedding of the function into organisational structure and processes
    • Review and further development of reporting, embedding into reporting landscape
  • Certification of internal models
    • Support during the supervisory approval process
  • Implementation of the standard-formula calculation
    • Conceptual support during the design of calculation processes, review and enhancement of existing processes
    • Design of processes, data requirements and interfaces
  • Qualitative risk management and reporting
    • Design and implementation
    • Review and enhance existing processes
    • Documentation and support

Swiss Solvency Test

  • Creation of SST report
  • Support during the supervisory approval process for internal models

Design and implementation of actuarial processes

  • Reserve analysis
    • Data requirements and interfaces
    • Support with the actuarial methodology as well as the definition and implementation of closing processes
    • Design of reserve report and related reporting processes
  • Actuarial management
    • Design and implementation of an actuarial controlling, overall and by segment, including an analysis of earnings drivers
  • Embedding internal risk models into corporate processes and decision-making
    • Dynamic financial analysis
    • Asset-liability management
    • Value-based management
    • Regular reinsurance review
    • Risk appetite and limit systems
  • Claims management
    • KI-based solutions for supporting and automating the claims adjustment process

PROJECT SUPPORT

The organisation and coordination of the project team is an essential driver for the success of a project. We at BELTIOS P&C offer valuable support to our customers, including the following activities:

Project management

  • Acting as external project manager
  • Supporting the project management

Application solutions

  • Design of applications
  • Actuarial implementation, for instance:
    • Modelling software
    • Risk management concepts
    • Actuarial tools and models
  • Design, implementation and performance of tests, quality assurance

SOFTWARE SOLUTIONS

Reserve estimation

BELTIOS P&C developed its own web-based software RESTA for actuarial claims reserving. RESTA has been used by BELTIOS P&C’s actuaries on various assignments and is also available to be licenced by our customers.

RESTA’s features include the following:

  • User-friendly, with an intuitive user interface
  • Best-practice actuarial reserving methods such as
    • Chain Ladder
    • Additive Model (based on loss increments relative to exposure)
    • Bornhuetter-Ferguson
    • Tail estimation using curve-fitting
    • Weighting of different methods, by origin period, to obtain the selected estimate
    • A number of result summaries and charts supports the user in the validation and final selection of reserve estimates
  • Variation Analysis and estimation of the premium reserve under Solvency II
  • Reserve uncertainty can be measured analytically under the ultimate and the one-year view. RESTA also includes the simulation-based bootstrap approach which provides a result distribution “to ultimate” and, via the re-reserving method, a distribution of the one-year run-off result.
  • Customer-specific configurations are possible
  • Flexible input and output of data (for instance MS Excel™)
  • Best-practice standards in the areas of auditability, data security, and archiving
  • RESTA supports parallel accessing of models by several users and offers a state-of-the-art role system for different tasks such as modeller and reviewer. It is suitable for large-scale use in a complex organisational environment.
  • Continuous development, also in line with customers‘ requirements

Further information is available here: Flyer RESTA .

Should you be interested in the software or in a demonstration, please contact resta@beltios.de.

Solvency II Reporting

In cooperation with SolvencyTool, we provide a powerful and widely used platform for Solvency II reporting and the calculation of the Solvency II standard formula.

  • Calculation of the Solvency Capital Requirement (SCR) using the standard formula
  • Support of the ORSA process
  • Quarterly and annual reporting
  • Numerous existing implementations
  • Solvency II compliance has been externally certified

With SolvencyTool, your Solvency II reporting will be always up to date. Please contact Torsten Grabarz (Cologne, +49 89-4522 978 62, email) or Carsten Peters (Munich, +49 89-4522 978 36, email) if you would like to learn more.