2024 ValAct Meeting Virtual - Session 7A: Actuarial Target Operating Model – Optimizing the Actuarial Delivery Model 9.19.24 Recording

Insurance companies are substantially transforming their finance operating model. This is mainly trigged by the prevailing changes in the insurance regulatory landscape that are leaning towards principle-based reporting and valuation, which is leading to a significant increase in the effort needed for regulatory and management reporting. Under this transformation, companies are focusing on identifying core/non-core finance and actuarial activities, determining an optimized delivery model, and modernizing their processes to achieve high productivity, cost efficiency, and regulatory compliance. This delivery model optimization includes identifying activities that can be retained or outsourced, developing process KPIs, and identifying a cost efficient geographical location and/or partner for delivery. Insurers are aiming to setup their own delivery centers or leverage co-sourcing/outsourcing arrangements with other firms. The future state optimized operating model would deploy a team with relevant experience, well-structured training/onboarding programs, effective process ownership, appropriate levels of governance and controls, and will adopt a culture of continuous process improvements. Learning Objectives: This presentation will explore the approach used to identify actuarial activities for outsourcing/in-sourcing, develop KPIs for a successful actuarial outsourcing, determine criteria to select an appropriate outsourcing partner, and identify opportunities for process modernization. Furthermore, the presentation will provide real-life case studies on how operational excellence and process innovations can improve actuarial productivity and cost efficiency, and enable an accurate and holistic regulatory and management reporting framework.