Actuarial and Risk Modelling for Insurance
The two basic types of models used in actuarial modelling are deterministic models and stochastic models. Deterministic models are the simpler of the two. They both use estimates of probabilities for each event, and they predict the number of events that will actually happen based on these estimates. Stochastic models allow for more randomness, but they require more computational power.
Finalyse combines a technological perspective with a practical approach to actuarial and risk modelling, helping insurers manage this balancing act along each step of the process.
How does Finalyse address your challenges?
Model controls and processes:
Review current control environment, governance and documentation, model issues and incident management and formal change control process
ESG validation:
Review the asset models appropriateness, verify the appropriateness of the ESG calibration process, verify the appropriateness of the ESG outputs and produce sensitivity analysis
Tools we use:
VBA for Excel, SQL, R, Python, SAS, Power of BI, Machine Learning, Prophet modelling and coding, ResQ, Moody Analytics RiskIntegrity IFRS17 modelling, SAS for IFRS17
Actuarial modelling and pricing:
Review, enhance and produce models for both actuarial reserving and actuarial pricing using the latest sophisticated techniques such as machine learning for pricing
Partnerships:
We have a long and successful partnership with SAS and Moody’s in implementation projects including IFRS17 and IFRS9
IFRS17 Actuarial Modelling experience:
IFRS17 implementation, testing, configuration and testing, Pre-defined use cases, Pre-defined validation policy and process and CSM Prototype
How does it work in practice?
Finalyse’s actuarial and risk modelling cycle:
Examples of Our Software Integration Modelling Partnerships:
Key Features
- Given the ever-increasing regulatory scrutiny in the context of the Solvency II European framework, we ensure that the internal models/actuarial models respect the fundamental guiding principles and accepted market practices.
- Finalyse provides solutions tailored to your modelling methodologies and business requirements.
- We carry out the following types of model reviews: structural review, high level reasonableness review, test results, limited review of key areas, logical accuracy review, technical review, model points testing and independent replication of model.
What Finalyse experts say
On the 25th June 2020, the International Accounting Standard Board (IASB) has published several amendments to IFRS 17. These amendments address many of the concerns raised by the industry and aim at facilitating the implementation of IFRS17, without deviating from its underlying principles. Along with a postponed implementation deadline, the amendments aim mostly at decreasing the administrative cost and complexity as well as improving the consistency of the financial statements results. This article goes through all the changes that result from these amendments, and discusses their impact on the IFRS 17 implementation.
ReadThe 2020 Solvency II review intends to bring about several changes to the Solvency II Framework Directive. It follows the 2018 Solvency II interim review, which amended the Solvency II Delegated Acts. In this article, we focus on the EIOPA’s opinions on technical provisions. For now, we are excluding Long Term Guarantee (LTG) measures, a topic which deserves an article all to itself.
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