Actuarial services

In the continual search for skilled people, many companies incentivize their employees by offering fringe benefits, such as group insurance or a pension plan as part of their compensation policy. Given the technical complexity and evolving nature of pension, disability and hospitalization matters, our experienced team is ready to help you take the best decision. We advise you with regard to all pension issues, from accounting to HR considerations.

Our main fields of expertise are the following:

We provide bespoke pensions consulting services tailored to your specific needs, e.g. reviewing and adjusting pension strategy to align with commercial needs, supporting management and employees during times of change, carrying out cost/saving analysis on potential pension change simulations:

• risk function for pension funds.
• actuarial studies taking into account the company request and the company situation (cost optimization, restructuring, merging, among others) for pension, disability and hospitalization covers;
  
• implementation or modification of a pension plan (plan design, plan financing, selection of a provider, presentation of the plan to the Board, the unions and workers, etc.);

With more than 20 years of experience in the public sector, we provide tailor-made solutions to municipalities: determination of the pension loadings, analysis of new financial and operational risks, analysis of the possibility of internal or external funding, etc.

We work with local Deal Advisory teams that are highly experienced in providing M&A assistance:

• preparation of a due diligence report for pension liabilities and related risks;
• participation in Q&A sessions.

Our qualified actuaries provide thorough support in carrying out actuarial valuations, including: data cleansing, suggesting actuarial assumptions, carrying out the valuation and presenting results to management and responding to auditor queries, where necessary:

• under IFRS/USGAAP of the pension payments, the early retirement pensions, the jubilee benefits;
  
• under BEGAAP, the minimum funding requirements valuations for pension funds or corporate entities.
  

We use our technical accounting experts and leverage our audit experience so that management can have confidence in the robustness of its pensions accounting entries:

• coordination of consolidation processes;
• providing an input on the actuarial assumptions and accounting treatment.

Now more than ever, the insurance sector faces complex challenges. New regulatory requirements and adverse economic conditions put the world of insurance under pressure, requiring technical improvements and increasing demands on reporting and transparency – while at the same time needing to preserve strong a strategy and competitiveness. Our team is ready to provide actuarial advice to insurers in life, non-life & health.

Our main fields of expertise are the following:

We assist you with the three pillars of Solvency II, focusing on the quantitative aspects:

Pillar 1: implementation or validation of the SII calculations under both the Standard formula (incl. USP’s) and (full or partial) internal models and optimization of product design, capital management and free capital generation.

Pillar 2: assistance with Own Risk & Solvency Assessment and support to the Risk function (up to full outsourcing) and with the design and implementation of a Risk Management System, incl. Key Risk Indicators.

Pillar 3: together with our Technology Advisory experts we provide you with reporting solutions.

We assist you with the calculation of technical provisions under different accounting standards (BGAAP, IFRS, US GAAP, PRC GAAP, etc.), using tools developed internally and by the network.

We assist you in developing or enhancing your rates, taking into account the expected claims, mortality, expenses, investment returns, lapses, required RoE, price sensitivity of the clients, development of the life time value of the clients, pricing of the competition, among others.

We work with you to design smart dashboards, which can deliver the full potential of the available information to identify early-stage structural trends, opportunities and threats with regards to the strategic objectives of the companies.

We assist our Deal Advisory colleagues with valuations of insurance companies and portfolios based on detailed cash flow, reserving and required capital projections. Furthermore, we assist with due diligence focusing on the valuation of technical provisions and the calculation of the required capital.

Several insurers outsource their actuarial function to us. This includes annual opinions on the adequacy of the statutory and SII technical provisions, on the profitability, on the reinsurance program and on certain aspects of the ORSA report.

We use D&A in traditional fields of play, such as insurance pricing, as well as for marketing, churn reduction and fraud detection.

We assist you with the development of your ALM, combining the modeling of your cash flows with our knowledge of constraints in terms of solvency, accounting, profit sharing rules and risk appetite. For tax matters we involve our colleagues from KPMG Tax.

We assist insurance companies with the creation of new legal entities or with the extension of their activities to new LoB’s, where we cover the financial, actuarial and accounting aspects, the legal requirements being taken care of by our colleagues of KPMG Law.