Skip to content Skip to footer

Loading Results

Actuarial and finance modernization: The drivers of change and how they impact you


Rapidly changing market and technological conditions are presenting insurers with an unprecedented range of strategic and operational challenges, and new and rigorous expectations from regulators and standards setters are making matters even more complex. These changes are driving the modernization agenda.

As a result, there will be increased demands on the finance, risk and actuarial functions, and potentially significant impacts to business strategy, investor education, internal controls, valuation models, and the processes and systems underlying each – as well as other fundamental aspects of the insurance business. Accordingly, insurers need more sophisticated financial reporting, risk management, and actuarial areas to address complex measurement and disclosure changes, regulatory requirements, and market expectations.

Regulation and reporting

Changes in regulatory and reporting requirements will place greater demands on finance, risk and actuarial functions.

  • Changing global and federal regulation (e.g., FIO, Federal Reserve oversight)
  • Principle-based reserving
  • ORSA
  • Solvency reporting measures
  • Insurance contract accounting

Information and analytics

Stakeholders are demanding more information, and boards and the C-suite need new and more relevant metrics to manage their businesses.

  • Economic capital
  • Embedded value
  • Customer analysis and behavioral simulation
  • New product and changing underwriting parameters

Operational transformation

Those in charge of governance are demanding that the data they use to manage risk and make decisions be more reliable and economical.

  • Updated target operating models
  • Centers of excellence
  • ERM, model risk management and governance
  • New COSO framework
  • Controls optimization and efficiency studies

The importance of cross-functional collaboration

These change drivers, which impact every facet of the business – from processes, systems and controls to employees and investor relations – have significant overlaps and insurers cannot deal with them in isolation. But, in order to meet emerging challenges and requirements, simply adding new processes or making one-off isolated changes will not work. Systems, data, and modelling will have to improve, and the finance, actuarial, and risk functions will need to work together more closely and effectively than they ever have before to meet new demands both individually and holistically.

View more

Timeline of new standards and regulations

All of this change is imminent: Over the next five years, leading companies will separate themselves from their competitors by fully developing and implementing consistent data, process, technology, and human resource strategies that enable them to meet these new requirements and better adapt to changing market conditions.


View more

What’s at stake?

The insurers that wind up ahead of the game will excel at creating timely, relevant, and reliable management information that will provide them a strategic advantage. Legacy processes and systems will not be sufficient to address pending regulatory and reporting changes or respond to market opportunities, competitive threats, economic pressures, and stakeholder expectations. Companies that do not respond effectively will struggle with subpar operating models, higher capital costs, compliance challenges, and overall competitiveness.

View more

Contact us

Jeannette Mitchell

Insurance Trust Solutions Leader, PwC US

Mary Helen Taylor

Partner, Assurance, PwC US

David Honour

Partner, Actuarial Modernization Leader, PwC US

Richard de Haan

Partner and Global Actuarial Leader, PwC US

Follow us