Challenge
An international reinsurance group looking to expand its European and Lloyd’s business needed a scalable, robust reserving process. Although the Lloyd’s syndicate reserving was outsourced, this approach was no longer adequate for its expansion plans. The client requested that Milliman design and build a unified in-house reserving process, using a market-leading reserving software solution with newly established data feeds.
Approach
Comprehensive project planning and management: Milliman agreed on a structured project plan with the client, with clear milestones and project governance framework. This kept stakeholders apprised of progress, budget and risks.
Process mapping and design: We held workshops with the client’s actuarial, finance and IT teams to understand existing processes, inefficiencies and elements that should be retained or streamlined. We developed a detailed process map outlining both existing and proposed workflows.
Methodology and data integration: Milliman collaborated closely with various client teams to build a new, fully reconciled data feed. We implemented a consistent methodology, leveraging customised processes to input initial expected loss ratios and benchmark patterns into the reserving software. We created a full export process and prototype reporting database to enable enhanced actuarial analyses and financial reporting. The process was thoroughly tested via a parallel run prior to full deployment.
Impact
Timely delivery and budget control: The project was delivered within agreed-upon timelines and without budget overrun.
Smooth handover: The process was fully handed over to the internal teams with full documentation. A collaborative approach to the model build enabled a smooth knowledge transfer to internal team members.
Alignment with growth strategy: The client is now able to use the new in-house reserving process to scale its international business without a disproportionate increase in time spent on reserving and financial reporting. The actuarial team can focus on providing deeper insights into reserving trends to guide strategic growth aspirations.