Our goal is to support insurance companies in building their competitive advantage by providing solutions in the areas that require technical knowledge and experience in finance, mathematics, data analytics, machine learning-based predictive methods and risk management.
KPMG's actuarial services are provided by the team of expert actuaries who combine the latest knowledge in the fields of actuarial science and data science with many years of experience in the insurance industry.
In addition, we have access to experts from the international KPMG network – this way we combine our deep knowledge of the local market with know-how of the leading practices and KPMG’s experience on highly developed markets. We are a member of the KPMG European Pricing Group.
Our services include:
Data & Analytics
In recent years, methods based on machine learning (neural networks, decision trees, clustering) have opened new horizons in the key areas of insurance business.
We use machine learning methods in the areas such as:
In most cases, the implementation of predictive analytics can be supported by Robotic Process Automation (RPA) where we cooperate with a dedicated KPMG team.
Our solutions are usually delivered in R and Python. These platforms are flexible, inexpensive and lightweight to implement – they have become a standard that complements the capabilities of commercial solutions.
Automation and process management
With our cooperation between various teams within KPMG, we are able to implement Robotic Process Automation (RPA) in areas covering routine activities around reporting processes, with particular emphasis on the calculation of provisions and the handling of actuarial models.
The main benefits of RPA for insurance companies include:
How are these benefits achieved? RPA allows to:
In addition to implementing automation, our advisory services also include:
Apart from the actuarial sphere of the RPA implementations, we also offer our support in deploying automatic customer service and policy handling, loss adjustment, reporting and accounting processes.
Innovative insurance offer
Services in this area are designed to support the creation of new products, the renewal of existing ones and to support the optimisation of product management processes.
Our product management services cover the following areas:
Pricing is a critical element of product management. Given the demanding business environment, insurance companies do not find it easy to stay ahead of their competitors, especially on the mass market. The necessary precondition for gaining market advantage in this area is to find risks’ niches associated with propitious and adverse selection, to have the right price flexibility model and to include these elements in the pricing of premiums. This is particularly evident in motor third party liability insurance.
Our team helps to attain this goal by:
Business Intelligence (BI) enables efficient and accurate planning, budgeting and reporting, and helps to make decisions and monitor results in real time.
KPMG offers to insurance companies, among others, an insight into:
Source of profit analysis
The aim of this service is to implement an analysis of the current operating result broken down to: profit from margin on insurance risk, profit from administrative fees and profit from asset management fees. This allows to identify the reasons for variability of the operating profit and provides an insight into its long-term trends.
As part of our transactional processes, we support parties to transactions in the appropriate valuation of reserves, valuation of future profits, review of MCEV assumptions and methodology, determination of the MCEV and the value of future new business, finding gaps in efficiency and benefits from synergy of financial processes. We carry out due diligence reviews of risk management systems and actuarial due diligence.
ALM – Matching of Assets and Liabilities
Appropriate matching of assets and liabilities allows to increase the predictability of results, minimise the impact of market risks on the condition of a company, and reduce capital requirements under Solvency II.
We support the creation of such an investment policy where the portfolio of assets is well matched with liabilities. We determine the degree of freeing capital up and implement the ALM (asset/liability management) process which allows for continuous management of the match and a rapid response to market risks materialisation.
Given the importance and the number of changes in the methods of valuation and recognition of insurance provisions under IFRS 17, our team is ready to assist in their implementation, in particular in the following areas:
Solvency II and capital optimisation
We support insurance companies in many aspects related to the calculation process under the Solvency II Directive. We also use our knowledge of risk management, reinsurance, capital valuation and ALM to optimise the capital position of the company.
Our services include:
Review of reserves
Services in this area are to ensure that the financial information reported by our clients is prepared in accordance with the world's best actuarial practices and the relevant financial reporting standards.
Our services related to financial reporting include the following:
According to the Polish Accounting Standards, International Accounting Standards and US GAAP, estimation of provisions for employee benefits requires the application of actuarial methods.
Our services in the area of employee benefits include:
Additionally, we also provide services in the following areas: