In the context of financial services, transformation is an oft-maligned buzzword. However, if you overcome the initial feelings of cynicism that it may generate, transformation is an exciting activity – an entity takes its existing processes, structures and supporting tools, and through a targeted, concerted effort, replaces them with something better.
This article sets out a standalone view of what strong transformation practices should look like from an actuarial perspective. Leveraging KPMG’s insights into transformation projects undertaken by actuarial teams, we:
- consider end-to-end actuarial processes and,
- explore why transformation programmes succeed or fail when insurers attempt to redesign data flows, assumption setting, modelling, validation and reporting under real-world delivery pressure.
In this article, our central premise is that actuarial transformation should not be treated as a narrow exercise-such as one focusing on implementing new technologies or documentation. Ultimately, it is a question about the right operating model.
Success requires those engaged to ensure the following exist:
