Enterprise Risk Management (ERM)

  • Determining your company's risk exposure.
  • Putting solutions in place to control and manage such risks.
  • Implementing models and tools to assist with strategic decision making.

What?

Risk management within insurance companies addresses the following tasks :

  • Qualitative and quantitative detection of the company's risk exposure
  • Putting solutions in place to control and manage such risks
  • Selecting and implementing solutions to reduce such risks
  • Selecting and implementing solutions in order to transfer risk: optimisation of reinsurance programmes, developing risk insurance bonds, ...
  • Selecting and implementing solutions for risk diversification
  • Selecting and implementing hedging solutions: natural hedging of portfolios, optimal financial cover, ...
  • Modelling management rules and investment strategies in harmony with the level of risk acceptable for, and accepted by, the company
  • Optimisation of the solvency capital required under Solvency II

The stochastic models used to handle these tasks are highly useful in other domains such as :

  • Calculation of European Embedded Value (EEV) and of Market Consistent Embedded Value (MCEV)
  • Pricing of insurance products
  • Calculation of the profitability of insurance products
  • Calculation of economic capital requirements
  • Evaluation of solvency ratios (Solvency II),
  • Asset and liability matching (ALM)
  • Liability Adequacy Tests
  • Evaluation of balance sheets under IFRS norms
  • Supporting the actuarial function and both internal and external audits

Who?

All companies (life and non-life insurance, captives, pension funds, .) that wish to develop and implement risk management models.

How?

  • Analyse the risk management tools and procedures already in place within the company
  • Produce an opinion on the usefulness of introducing and/or developing a risk management model in function of the working nature and the specificities of the company,
  • Advise on the selection of a working tool. Does the company already have such a tool in-house? Does it have the necessary programming or other software which would allow it to develop such a tool?
  • Establish a project timetable
  • Develop the tool using the selected software
  • Test, validate, and produce the model
  • Document the methodology
  • Transfer the know-how

Elips Actuarial Services teams are available to intervene and offer support during one or more of the above stages.

The advantages of Elips Actuarial Services ?

Our experience

  • A team of experienced actuaries. This experience has been accumulated by our specialists during their previous functions within insurance companies and through their various missions for Elips Actuarial Services.
  • Our team of specialists has experience in the different tools which are market references for the development of models such as: Prophet, SAS, Remetrica, IBNRS, ICRFS,... and can also work directly on your existing tools.

Guaranteeing results

We offer undertakings on deliverables, budget and planning

Project management

We can manage all the organisation, delivery and follow-up on a project

Know-how transfer - and training

We work with your teams by placing joint groups made up of your personnel and specialists from Elips Actuarial Services in your company. At the end of the project your teams are able to maintain the systems and to adapt to future portfolio changes.

Elips Actuarial Services References

  • Implementation and development of a risk management model for a Belgian life insurance company. The model we currently utilise was developed using Prophet software and is used for portfolio validation in IFRS calculations.
  • Production of CPA-2006-1-CPA and CPA-2006-2-CPA dossiers.
  • QIS 3 and QIS 4 reports for several Belgian and Luxemburg companies.
  • Development of internal models for non-life subscription risks.
  • Production of articles, design and delivery of training on the global theme of risk management.