General Insurance

PwC 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

We provide 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.

PwC 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 Appointed 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 inform the board as to the key risks facing the insurer over the short to medium term.
PwC is currently the Appointed Actuary for several insurers within Australia, and has experience in preparing concise reports which deliver 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 catastrophic risks to manageable levels. The level of reinsurance risks ceded can have a significant impact on the Minimum Capital Requirement under APRA legislation. PwC 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. PwC has extensive experience performing outstanding claims and premium liabilities valuations, and is able to provide independent and professional advice to insurers on the adequacy of their reserves and reserving techniques.