OW Capability: Actuarial

Property and Casualty

Our Property & Casualty 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

Oliver Wyman Lighthouse

Oliver Wyman Lighthouse is a powerful data visualization tool designed to equip risk management and finance professionals for success.

  • Web-based to allow continuous access, Oliver Wyman Lighthouse provides secure claims insights and business intelligence anytime, anywhere
  • Interactive capability allows you to explore multiple perspectives and angles, elevating your understanding of your program
  • Artificial Intelligence scans for insights as an entry point for analysis
  • Insights gained can be communicated throughout your organization via flexible and easy-to-understand graphics
  • The Oliver Wyman Lighthouse platform can easily be customized to fit your specific needs
  • Reactive to new data and can be updated as frequently as desired

Insurtech Actuarial Services

InsurTech – Validating InsurTech Products by Translating Technical KPIs into Risk ROIs

Many InsurTech innovators have produced proven technologies, as measured by engineering KPIs. However, it is essential for their adoption in the insurance and risk space that their ultimate buyers and supporters – insurance companies and large self-insureds – are convinced that these technologies will produce ROIs measurable in “insurance terms” - provable reductions in loss cost, loss ratios, frequency of claims and average claim size. They will only invest if they are confident the technologies will lead to significant financial improvement.

Oliver Wyman Actuarial has worked as an independent third party with producers of InsurTech products to validate their technologies by “Risk ROIs,” taking their track records of results and translating them into results that matter to insurance carriers and self insureds. We work with data already collected or identify future data collection requirements, such that impacts of these technologies can be tested and hopefully proven to favorably impact risk costs and improve financial results. Provided ROIs are proven, we will partner with InsurTech companies to establish a strategy for connecting with and communicating results to potential product markets including co-speaking, publishing articles and meeting with markets to discuss Risk ROIs.

Who are ideal candidates for this sort of project?

  • Producers of physical devices such as telematics, wearables, smart cameras, smart goggles, etc.
  • Risk reduction software in areas such as cyber-risk metrics, data breach identification, compliance tracking, etc.
  • Insurtech innovators with enough experience and collected data to enable proof-of-product

Learn more here


Property and Casualty Insights