ENTERPRISE RISK MANAGEMENT, CAPITAL MODELING

Our consultants are very familiar with the various components that make up Enterprise Risk Management practices and such related governmental regulations as Own Risk and Solvency Assessment (ORSA), Model Auto Rule 205 (MAR), and Sarbanes-Oxley (SOX).  The components that encompass ERM, ORSA, MAR, and SOX are part of our normal actuarial consulting engagements.  As actuaries, we assess the strategic, financial, and operational risks of insurance companies when we calculate reserve and premium amounts.

As insurance consultants, we have conversations with insurance company management regarding their risk culture and appetite as we advise on new product development.  By combining these elements of our profession, we are well-positioned to bring value to ERM/ORSA/MAR/SOX reviews and reports.  Below we have highlighted our relevant experience:

  • Risk-focused examinations of insurance companies including reviewing ORSA documents.
  • Interrogating controls around:
    • Data
    • Ratemaking
    • Reinsurance
    • Reserving practices
    • Systems integrity
    • Underwriting
  • Developing & reviewing/validating models concerning:
    • Rates
    • Reinsurance adequacy
    • Reserves
    • Surplus adequacy
  • Developing Monte Carlo simulation models of:
    • Extreme loss events
    • Reinsurance recoverable
    • Reserve runoff
    • Underwriting performance
    • Serving as Appointed Actuary and evaluating risks to the company in that context.

In addition, our consultants have presented ERM/ORSA training to several outside organizations.  And, Derek Chapman, one of our firm principals, is a Chartered Enterprise Risk Analyst (CERA).