Private sector general insurance

PricewaterhouseCoopers Actuarial is a market leader in the General Insurance Sector. We provide advice to private Insurers to improve all areas of their business including the following:

Reserving for Claim and Premium Liabilities
PricewaterhouseCoopers provides independent advice on valuations, assumptions and methodology and can also develop complex projection methodology such as transition model techniques and statistical case estimate models.

Performance Monitoring and Benchmarking
Effective insurance business planning integrates the reserving, monitoring and price-setting functions. An output of the reserving process should include a set of defined targets for measurable key cost drivers.

In the case of workers' compensation, this may be an expectation of the number of claimants on benefit at any point in time. Expectations regarding future legal payments, settlements or notifications in a particular month are examples of other key performance measures.

PricewaterhouseCoopers use outputs of the reserving process to produce performance monitoring tools for the insurer to assess their own performance over time, and understand the key drivers behind their business.

Financial Condition Report
The Aproved Actuary of a general insurer is required to provide a Financial Condition Report on the overall condition of the entity to the board annually. This report is intended to provide information to the board as to the key risks facing the insurer over the short to medium term.
PricewaterhouseCoopers is currently the Aproved Actuary for several insurers within Australia, and has experience in preparing such reports in a manner which is concise, and delivers key insights to the Board such that timely action can be taken when required.

Reinsurance
The Australian general insurance market is relatively small, and reinsurance is used to reduce catastrophe risks to a manageable level. The level of reinsurance risks ceded can have a significant impact on the Minimum Capital Requirement under APRA legislation. PricewaterhouseCoopers is able to provide advice to Private insurers on Reinsurance arrangements, and calculate optimal levels of reinsurance.

External Peer Review
All outstanding claims and premium liabilities valuations are required to be peer reviewed by a Peer Review Actuary. PricewaterhouseCoopers has had extensive experience with performing outstanding claims and premium liabilities valuations, and are able to provide independent and professional advice to insurers on the adequacy of their reserves and reserving techniques.