Actuarial services

Financial services businesses in Asia are facing an unprecedented pace of change created by the increasing impact of convergence, globalisation and new technology. Yet, we also recognise that many of the most fundamental questions in running a business remain the same; only the answers are changing.

We are a team of specialists with technical expertise in statistics and risk analysis. We have the ability to process, manipulate and analyse large volumes of data, and interpret and translate the results into findings and conclusions that are more accessible to our clients. In order to drive maximum value for our clients, we invest significantly in; this results in an IT infrastructure that leverage when providing services to our clients.

With our analytical capabilities, we can provide you with the critical information and insights that you need to develop successful and competitive strategies, and enhance shareholder wealth.

Our team

Across the globe we have over 1,000 actuarial specialists, of which about 200 of them are located in the Asia Pacific region including Beijing, Shanghai, Shenzhen, Hong Kong, Taiwan, Singapore, Thailand and Malaysia. Our specialists have extensive experience in the industry with accredited professional qualifications, extended expertise and knowledge of both local and global regulatory requirements, and insights into emerging market developments.

Our actuarial specialists work closely with our PwC consulting, risk management and audit professionals, and leverage on PwC’s global network to provide holistic advisory services to many financial institutions, such as insurers, banks, retirement and health organisations, and asset management funds.

Actuarial services in Asia

Life actuarial cash flow modelling reviews under all major software solutions
GI actuarial reserve modelling
Insurance company appraisal value modelling
Dynamic hedging strategy modelling for complex insurance projects such as participating products and variable annuity products
Financial asset and derivative valuation modelling
Complex risk distribution modelling including interest rate risk, credit risk, equity risk, property risk, currency risk, mortality risk, longevity risk, morbidity risk, surrender risk.
Stochastic modelling

Identifying data quality and the pros and cons of the work flow of the enterprise
Enterprise positioning and competitor analysis
Product pricing, customer stratification, and customer behaviour analysis by statistical model
Establishing potential target for channels and marketing, underwriting, and claim department by forecasting model

Review of financial and regulatory reserves
Review of internal processes and controls
Validation of assumptions, methodology and results
Employment benefit plan services such as valuation of, and reporting on, solvency and capital adequacy
Independent assessment of outstanding claims reserves, prudential margins and IBNR provisions

Market and customer segmentation for pricing and underwriting
Analysing and pricing motor insurance using a variety of methods, including generalised linear modelling and predictive analytics
Price, and business mix, monitoring to support with designing and amending business strategies to increase competitiveness in market

Development of an enterprise risk management framework
Assisting with risk identification, modelling, and analysis
Establishing risk-based performance targets and KPIs
Assisting in developing risk strategy and processes; identifying risk preference and tolerance
Governance and risk reporting at an enterprise-level
Reinsurance optimisation

Minimum capital requirements for life, non-life and health insurers; dynamic solvency testing and modelling
Assisting in economic capital analysis
Assisting insurance companies in designing control processes and documentation for the compliance capital frameworks such as risk-based capital in Hong Kong, C-ROSS in China, and Solvency II.

Assisting with new capital regimes implementations, such as RBC in Hong Kong, Singapore or C-ROSS implementation in China and impact evaluation
Reviewing internal model and providing modelling solutions

Performing operational gap assessments and financial impact analyses
Defining methodology papers and accounting policies
Developing business and functional requirements to implement the new standards
Assisting in defining and implementing new actuarial operating models, including systems, data management and process
Modelling IFRS 17 liability components
Assisting in IFRS 17 transitions and profit analysis
Construction of detailed income statements under IFRS 17

Understanding areas where treatment under IFRS 17 and IFRS 9 should be consistent to avoid accounting mismatches
Analysing impact of new standard on profit and loss
Analysing impact of changes to classification and measurement of financial assets
Helping to understand and form new disclosures, as these are significantly different under IFRS 9

Identifying suitable acquisition targets and delivering SWOT analysis of targets
Assessing shareholder value of restructuring strategies
Due diligence appraisals including detailed evaluation on reserves, solvency, embedded value, and financial projections
Expert advice on merger negotiation, execution and integration
IPO supporting services

Designing of an future proofed Actuarial Target Operating Model (TOM)
Designing or redesigning of key actuarial processes, such as financial reporting and reserving, to increase efficiency, control and insight
Identifying areas for tactical automation
Implementing tactical automation (quick wins) using e.g. RPA tools, SQL databases, open source high-level programming languages such as Python
Supporting with large scale end-to-end actuarial transformation programmes
Leveraging efficiencies across multiple reporting bases through techniques such as the Baseline Delta Approach
Supporting with centralisation of processes and establishment of actuarial hubs
Running processes using in-house tools and processes as part of an managed service proposition