QED has been providing actuarial services to life insurance companies across the African continent for over two decades. Regulatory requirements have become more onerous over the years as the market aims to instil consumer confidence in the strength and integrity of the life insurance market.
Solvency Assessment and Reporting Requirements
Regulators require insurers to report annually on their solvency position. In doing so, QED employs various actuarial techniques necessary in determining the actuarial liabilities. The actuarial valuations are extensive and include product cash flow modelling, experience investigations, analysis of surplus to determine the sources of profits and losses arising on the different products lines to determine where corrective action is required.
The valuation and reporting exercises will satisfy reporting requirements to ensure that insurers are compliant with the guidelines but the annual valuation is a snapshot of the insurer’s position at the valuation date. To assist in the on-going management and operations of the company, QED can assist with various other services including product development and profitability analysis, projected accounts, capital and reinsurance optimisation, market
Product Development and Profitability Analysis
QED has extensive experience in premium rating a variety of life insurance products across the African continent and is well placed to understand what works in the different countries in which we offer our services. In developing a product, QED will work with Management in determining the optimal product structure and pricing assumptions for the chosen target market and distribution channels ensuring competitively priced and actuarially sound products that meet policyholder needs.
Capital and Reinsurance Optimisation
QED can assist in determining the optimal reinsurance arrangements for the business in-force and advise on the most capital efficient product structures for various life products.
Market and Feasibility Studies & Life License Applications
Due to our long history and extensive knowledge of the different markets and regulatory requirements in and outside South Africa, QED has performed various market and feasibility studies for our clients to determine the viability of entering selected markets and selling various insurance products in those markets. QED works closely with Management in setting market entry strategies and pricing of proposed products to ensure the approval of life license applications with the various regulators.
We also provide other services such as peer reviews, M&A technical support, actuarial function reviews, assistance with strategic planning, embedded value and appraisal value calculations and asset-liability modelling.