OW Capability: Actuarial

Property and Casualty

Our P&C practice assists with both the qualitative and quantification of risk and loss exposures, and provides advice on external business strategy, internal risk management, enterprise risk management, predictive modeling, economic capital modeling, implications of mergers and acquisitions, and new product development.

Our Property & Casualty Actuarial Practice provides services to two distinct industries - entities which are self-insured or maintain a large deductible program and insurance companies. Our specialists in the Self-Insured industry provides actuarial services to a broad range of industries; our experts focused on providing services for insurance companies consult on issues primarily impacting (re)insurance companies.

Self-Insured Services

Our P&C Self-Insured actuaries specialize in providing actuarial support to a variety of self-insured clients, including corporations, governmental entities, healthcare organizations, and educational institutions. We have extensive familiarity with workers' compensation, medical professional liability, and other commonly self-insured coverages including general liability and automobile liability. We routinely provide actuarial expertise in the following key areas:

Unpaid Claim Evaluations (Accrual Determinations, Funding Studies): Oliver Wyman provides estimates of unpaid claim costs to support liabilities reported on the balance sheet. As appropriate, our estimates include a provision for risk and consider the time value of money.

Forecasts and Insurance Optimization Analyses: Our actuarial estimates of future claim costs and associated cash flows provide a foundation for the strategic decisions necessary to manage risk. We help clients determine an optimal balance between risk retention and risk transfer by considering the likelihood of claim outcomes, the cost implications, and their risk appetite.

Predictive Modeling and Big Data Analytics: Oliver Wyman combines advanced statistical modeling and rapidly evolving technology applications to enable clients to harness the valuable information hidden in their data. Our claim predictive modeling solutions use client and industry data to provide early detection of potentially large claims, allowing for early intervention and helping reduce claim and claim management costs.

Other Key Areas:

  • Alternative risk financing studies
  • Due diligence for mergers & acquisitions and loss portfolio transfers
  • Claim cost allocations
  • Performance monitoring
  • Benchmarking
  • Enterprise risk management (ERM)
  • Insurance department financial examination support

Insurance Company Services

Oliver Wyman P&C actuaries and consultants have deep actuarial and insurance market expertise and are widely recognized as subject-matter experts in the P&C insurance industry. Many of our P&C actuaries and consultants have years of hands-on insurance company experience. Our team includes former chief actuaries, chief risk officers, chief underwriting officers, and regional executives. Our areas of expertise include:

  • Own Risk Solvency Assessment (ORSA)
  • Enterprise risk management (ERM)
  • Underwriting and claims reviews
  • Claims and underwriting analytics
  • Economic capital modeling
  • Model validation
  • Loss reserving
  • Pricing reviews
  • Actuarial peer reviews
  • Base erosion and profit shifting (BEPS)

Predictive Analytics Services

Oliver Wyman combines advanced statistical modeling and rapidly evolving technology applications to enable clients to harness the valuable information hidden in their data. We offer state-of-the-art analytical capabilities including traditional generalized linear models (GLMs) along with machine learning algorithms using a variety of leading analytics software, such as R, Python and SAS that can be seamlessly integrated into your systems.

Our pricing and underwriting services include analyzing your rating plan for hidden profit opportunities, assessing and re-evaluating your rate level adequacy, and developing more sophisticated underwriting criteria.

Our claims predictive modeling solutions use client and industry data to provide early detection of potentially large claims, allowing for early intervention and helping reduce claim and claim management costs.

Data Infrastructure:

  • Build or enhance your data warehouse and/or data collection process
  • Help identify non-traditional datasets to improve predictive power
  • Assist and communicate with IT departments to ensure the right data is collected

Model Building:

  • Enhance traditional statistics with advanced machine learning techniques
  • Obtain client feedback to ensure a robust model is fit to the purpose
  • Rely on client-specific data over industry data whenever credible

Implemetation:

  • Adopt the implementation plan to client-specific needs and systems
  • Offer implementation options ranging from OW hosted scoring tools to integrating models into current client systems

Monitoring and Updating:

  • Refresh models to fit more recent client data/trends
  • Develop scoring reports and custom dashboards to assess performance
  • Provide expertise to identify risk areas, identifying opportunities, and converting analytic results into financial savings and volatility reduction

 

OLIVER WYMAN EXPERTISE


Property and Casualty Insights