Actuary Outsourcing Insurers

Use Case 1: Outsourcing the Actuarial Function

We understand the reservations senior people may have about bringing an actuarial consultant into their business. Here's how we turn outsourcing from a source of trepidation into a font of business value.

 

Gerry is the CEO of a small insurance company operating in the non-life space.

While his team aren’t required to have a qualified actuary in-house, Gerry is faced with a combination of a mounting load of regulation, a lack of capacity and resource depth, and a range of financial pressures.

Gerry has previously considered outsourcing the actuarial function, but has some major reservations:

 

Cost

The most obvious option available is to go with one of the Big Four, but they charge stratospheric day-rates, and budgets are already tight.

And won’t the larger consultancies simply parachute in a pre-packaged, pricey solution that doesn’t necessarily fit with his specific needs?

 

Process

Gerry is concerned that third-party actuaries will act like his year-end accountants: they’ll just file the necessary reports and then leave without taking the time, at senior management level, to join the dots and link their findings to strategic decision-making.

 

Attitude

Will an outside actuary be overly cautious in their thinking when Gerry’s business may need to be more agile and adventurous to remain competitive?

 

Here's how City Actuaries can help a CEO in Gerry's position:

 

Affordability

Gerry will be able to outsource the actuarial function to a reputable group of experts at an affordable price.

 

Flexibility

Compared to a Big Four package, City Actuaries offers a more bespoke, relationship-centred service that reflects and responds to Gerry’s unique priorities as a business leader.

 

Added Value

Gerry’s business can continue to work with City Actuaries as a long-term partner: the deeper the knowledge of his business, the more benefits (strategic, operational, financial) can be derived.

 

If you're interested in actuarial outsourcing that's agile and affordable, contact us today.

 

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