04/01/2021 by Graeme Charters
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:
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?
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.
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:
Gerry will be able to outsource the actuarial function to a reputable group of experts at an affordable price.
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.
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.