Insurance

Business environment

Strong competitiveness in the area of insurance tariffs and consequent insurers’ margin deterioration
New competition in the form of P2P insurers and technological companies offering insurance products
Cases of nonstandard sales practice that may damage the reputation of insurance sector
Segmentation of insurance products and utilization of modern methods for pricing existing products

Influence of regulators

Distribution methods – can be impacted by legislative changes and by commissions of the intermediaries
Legal structure – increasing regulatory requirements may enhance further centralization and expansion of networks of foreign insurers across European market
Tax and capital optimization
Executive management and risk management of insurance businesses – application of Solvency II principles implies changes in the management of insurance companies
IFRS 17 (reporting, compliance)

Economic environment

Low interest rate environment and consequent low investment returns on assets, and losses from guaranteed products

Political influence

Investment strategies – impact on investment structuring
Risk management

Demographical changes

Responding to population ageing and changes in family structure

Behavioral and social changes

Ways of distribution – digitalization of society leads to changes in how customers are approached
Products – increasing pressure on product offers, systems and technologies to be more simple and transparent

Technological changes

Ways of distribution – increasing importance of purchases of mobile devices requires technological changes within insurance industry
Systems and technologies – cloud computing and response to increasing cyber risk exposure

Actuarial services

Nowadays, actuarial teams are some of the most important within insurance companies. Insurers face problems when it comes to the effective utilization of employees with specific technical knowledge. The role of actuaries is slowly drifted from one of being supportive to that of being more business related (product segmentation, competition pricing, sophisticated analysis of new and current business, etc.). Implementation of regulatory requirements and calculation of capital adequacy are also important parts of actuarial daily work. Currently, there is a lack of experienced actuaries on both the Czech and international markets so their usage is critical for the success of insurance companies. We can expect that the requirement for actuarial resources will increase in the foreseeable future. This will be caused by competitive markets and new regulatory and legislative requirements (Solvency II, IFRS 17).

Other services

Services of licensed actuaries in accordance with the requirements of the Insurance code
Services of experienced members of actuarial teams in the areas of reserving, implementing and improving “cash-flow” models, setting insurance rates, compliance with regulatory requirements, etc.
Analysis / assessment of the structure and utilization of actuarial departments in insurance companies, the improvement of efficiency of actuarial knowledge for the benefit of business
Audit/review of actuarial methods utilized by the company and recommendation on their further development
Revision/review of current segmentation of insurance products
Assistance/advisory in the development of new insurance products
Revision/review of market strategy and proposal for its improvement during times of constantly developing power of pre-sales channels and internet sales
Advisory on the implementation of models in line with IFRS 17 Standard
Advisory on the implementation of models for assessing the best estimates of liabilities, risk margin and capital requirements under the Solvency II Regulation
Advisory on the calculation of provision for employee benefits in line with the collective contracts of specific companies in accordance with the IAS 39 Standard
Advisory on utilization of GLM model (generalized linear model).