Insurance and Asset Management

As an insurance company, the client is required by European law to comply with the Solvency II Directive. The project objective of this client is a full implementation of the regulatory requirements as well as the digitization of the corresponding processes. We are responsible for the strategic redesign of the existing IT application landscape with a focus on automation and efficiency. Furthermore, we support the client by implementing an asset management and valuation system based on SQL and SAS. We also introduce a full dynamic Asset Liability Management system using the actuarial software package Prophet Professional, including the actuarial modeling of company-specific liability products and full valuation and projection of the asset portfolio. This enables the client to calculate and project market, life and health risks and a full P&L Attribution in various scenarios. It has proven to be enormously valuable in fulfilling the regulatory reporting requirements and in monitoring and evaluating of the client’s strategic risk profile.

The client aims to redesign and implement a Data Warehouse to modernize the standard reporting for sales- and corporate controlling as well as actuarial departments. We designed the data model for contracts, partners, processes, benefits and loss. One of the main challenges was the integration of the heterogeneous data sources  into a comprehensive contract data model supporting multi-dimensional validity histories. Introducing this DWH allowed the client to cut back several legacy systems and significantly reduced the time to generate group-wide KPIs.

Solvency II required a change in paradigm for the risk management of the insurance sector. Our client sought support at the introduction and development of an Internal model under Solvency II for its solo undertakings as well as on group level. This included the conceptual design and implementation of Internal models for market risk and non-life underwriting risk. We accompanied the client in this challenge and further supported during test, validation and calibration of the Internal model. In addition, we implemented the pillar III requirements on Solvency II reporting and supported the creation of reports during the preparatory phase and until day-1 reporting.

IFRS 17 represents a major change to the insurance sector: This regulatory framework requires actuaries and accountants to develop a common view on the company’s insurance contracts and it has a strong impact on the company’s balance sheet and income statement. We support our client with the relevant IT implementations in the context of IFRS 17. First, this includes creating an IT architecture for the entire data management of the IFRS 17 calculation kernel and connecting various source systems to the solution. During the implementation of the end-to-end process and the data management implementations regarding the granularity level of the calculations for all national and international entites, the multitude of stakeholders became an additional driver of complexity. We successfully negotiated the respective IFRS 17 issues with the different parties involved and are now also taking on central tasks in functional and technical requirements engineering as well as in project coordination.