Today’s requirements call for a harmonized and controlled actuarial reporting process, that leverages on integration, optimization, and automation. A digital redesign of your process could:
- connect your data sources more effectively and handle larger volumes of data more efficiently, with a data model designed for flexibility and scalability;
- optimize your calculations and calculation times, with smart actuarial and programming techniques;
- produce more insightful reports, by telling a story, rather than just showing numbers;
- improve the control and auditability of your process, with extensive checks and balances;
- reduce the overall process time, by automation of the workflow.
This could help you cope with current and future changes in (regulatory) requirements, and give you more time to analyse results, resulting in more insight in the risks your company will take and how to manage them. On top of that, it can help you to save on operational expenses and potentially to release prudency.
But if it were quite as simple, why haven’t all insurance companies transformed yet? The reason is that often the time pressure on the implementation of new standards and substantial investments in existing systems make it more natural to upgrade them, rather than to replace them for a more optimal environment. Apart from that, these existing systems need to function continuously to perform the reporting process, and who dares to replace its heart while it has to function around the clock?
In our view and experience, however, innovative digital actuarial platforms can be developed in parallel to the current systems. Portfolios and features can be added gradually over time, while the existing systems generate all the required reports. The old systems can be decommissioned as soon as the respective portfolios and features have been implemented and tested. Although the change may sound big, and thus probably expensive at first, these innovative systems can be more affordable than the current systems in the long run, saving on expensive license fees and profiting from the efficiency gain that they will bring you.
If you want to know more about these innovative solutions, please contact Egbert Kromme or Peter Bosschaart, or have a look at KPMG Integrated Insurance Platform: a user-friendly platform that digitizes the actuarial reporting process.