Actuarial business reviews

An external actuarial review provides a business with certain crucial internal insights that it would find difficult to generate from within. These insights can result in considerable cost savings and increased profitability, hence creating value.

The scope of an actuarial business review may include:

• Risk Based Capital Analyses to determine how efficiently capital is being used within the business (for example, to determine whether there is excess capital or whether more capital is required; and if there is an excess, how this capital might notionally be allocated to various classes of business or otherwise used),
• Estimates of Future Profitability to determine for example whether growing either the motor or Workman’s Compensation businesses would have a more positive result on the bottom line, taking into account the amount of capital required.