NMG’s Actuarial Consulting practice provides consulting services for insurers, reinsurers and regulators, including:
- Statutory liability valuation
- Product development and premium rating
- Capital management and risk-based capital (RBC)
- Reinsurance structuring and optimisation
- Appraisal value assessment, M&A and actuarial due diligence services
- Financial modelling, scenario and stress testing
NMG’s Actuarial team provides a full range of services in general insurance, health insurance, takaful and reinsurance/retakaful; as well as project work in life insurance and reinsurance, in pensions and in employee benefits.
We provide actuarial training and capability development services, working with insurers on developing their internal models and processes. We also offer an end-to-end proposition around insurance captives, to corporates as well as brokers, banks and high net worth individuals.
The Actuarial team is a key component of NMG’s Analytics proposition, providing the statistical analysis and modelling capability that supports a number of our public studies and bespoke propositions.
NMG’s Actuarial team is focused on growth markets, and is now one of the largest specialist actuarial teams operating across the Asian and MENA regions. We provide ongoing statutory and product/capital services to more than 40 companies in Singapore, Malaysia, Indonesia, Thailand, Sri Lanka and the Philippines, as well as into Africa and the Middle East. We have extensive experience implementing risk-based capital, tariffing and de-tariffing and supporting the introduction of new products and channels as well as innovative financing and reinsurance structures.
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Mono-line Catastrophe Carrier
Challenge: A leading development bank approached NMG to develop a business plan for a mono-line catastrophe insurance carrier under a risk sensitive capital structure focusing on earthquake risks. Our actuarial team was chosen as the preferred partner based on the relevance of its capability set, but also importantly our focus and in-depth understanding of the practices and expectations in developing markets.
Approach: A joint team developed a comprehensive business model that took input from catastrophe modelling results and market studies to generate a five-year forecast model for an investment grade business entity.
Results: This model also supported the discussions of the international working group with the wider insurance industry and assisted the client in understanding the key drivers of the business and extent of exposure.
Loss Portfolio Transfer
Challenge: A leading Malaysian insurance company engaged NMG to explore alternative methods of Capital relief under the Malaysian RBC framework.
Approach: The team undertook a feasibility study for a Loss Portfolio Transfer (a specialist reinsurance contract) and presented the company with a report on the expected premium and improvement in Capital Adequacy Ratio under the arrangement.
Results: NMG was subsequently engaged to execute the arrangement and acted as advisers to the company which resulted in the successful placement of the reinsurance contract with a reinsurer and significant Capital Adequacy Ratio improvement for the client. The transaction was the first of its kind in Malaysia.
Risk Based Capital advisory services
Challenge: NMG was approached by a number of Sri Lankan insurers to help them understand the implications of the new RBC framework being proposed by the regulator.
Approach: This involved the development of an ‘indicative capital adequacy ratio’ model that was released to the market to anticipate the solvency position of a company during the voluntary parallel-run phase of the RBC framework implementation.
Results: This resulted in an overall improvement in the level of technical awareness within the industry and facilitated more meaningful discussions with the regulator.