Actuarial Services

The actuarial function is an essential aspect of an insurer's operations, addressing reserving, pricing and capital. The actuarial function can add value to all these areas while also meeting regulatory requirements in the chosen domicile.

Artex can serve as the actuarial function or head of actuarial position as required by various jurisdictions:

• Actuarial Function (EEA)
• Chief Actuary (UK)
• Head of Actuarial Function (Ireland and Gibraltar)
• Loss Reserve Specialist (Bermuda)
• Chief Risk Officer

Although clients may initially seek actuarial support to meet regulatory obligations, we are aware that actuaries are valuable and costly assets and are committed to delivering added value beyond fulfilling the minimum requirements.

We can perform both quarterly and annual reserving exercises and undertake in-depth annual reviews for statutory accounts. These services can be offered as part of the wider actuarial function or as a discrete piece of work in support of your own teams. Our analyses are based on accepted actuarial standards, principles and methodologies and are designed to suit your needs and requirements. Typically, the work will be supported by a presentation to the board and/or executive team, along with a full report.

We can provide a calculation of the technical provisions, as required for Solvency II, the Bermuda Monetary Authority and other regulators. This is supported by a walkthrough from GAAP/IFRS reserves to the Regulatory Technical Provisions. We also offer peer reviews of third-party technical provision calculations as required by some regulators.

With a wide range of clients and extensive experience, Artex has intimate knowledge of the Solvency II standard formula and issues arising. Artex undertakes Solvency II reporting for many of its insurance and reinsurance clients.

We provide an end-to-end solution with full audit trail, XBRL conversion, offer consultancy services on Solvency II reporting and provide training to boards and executives on QRTs and reporting

The IFRS 17 reporting regime requires extensive actuarial input. Artex's Actuarial team has extensive knowledge and expertise in IFRS 17, assisting clients with the new reporting requirements. This may involve populating an 'off-the-shelf' reporting tool or developing and building a bespoke model for the client's specific reporting needs.

All the above skills and techniques can be applied in a transactional capacity. Artex's actuaries have advised on:

• Commutations
• Novations
• Mergers and acquisitions
• Retroactive (re)insurance
• Programme design
• Risk transfer reviews
• Risk finance optimisation

Artex discharges the role of risk function for a wide range of both Artex-managed and third-party clients. For larger clients, members of Artex's Actuarial team can act in the role of head of risk function/chief risk officer on an outsourced basis.

Artex performs Solvency II solvency capital requirement (SCR) calculations for clients across the UK and Europe and provides consultancy advice and validation on client SCR calculations.

We use a vendor model with seamless links to management accounts and reporting software with a full audit trail. This automates the process and eliminates the need for manual intervention, eliminating the risk of manual errors.

For non-Solvency II jurisdictions, Artex calculates the own solvency needs based on relevant and applicable risk metrics in consultation with clients and informed by the client's risk appetite.

Artex's actuaries have supported a client in applying for and gaining approval for the undertaking specific parameters in the Solvency II standard formula, resulting in a significant capital saving for the business. This was the first successful application of its kind in Ireland, and amongst a small number in Europe.

The ORSA is an effective and powerful risk management tool. A well-performed ORSA process will inform capital planning and efficiency, risk appetite statements and company recovery plans.

We build a flexible, bespoke capital projection model for each client, taking the business plan as the input and projecting forward the balance sheet and solvency requirements in the base case and in an unlimited range of client-specified scenarios and stress tests.

We also believe that even when not required (e.g., in non-Solvency II jurisdictions) the production of an ORSA can be extremely helpful in capital planning and identifying risk management actions for the company.

Artex has facilitated more than 100 ORSAs for clients since the introduction of Solvency II with continuous refinement and enhancement of our process.

Artex has performed a number of risk reviews for third-party client companies, including:

• Review of risk appetite statements
• Review of risk function
  • Processes
  • Procedures
  • Documentation
  • Governance
• Review of SCR calculations and QRT reporting framework

A feasibility study is undertaken to determine if a proposed captive solution is appropriate for funding and managing risk. Artex's Actuarial team supports numerous captive feasibility studies for a wide variety of organisations with varying risk profiles.

A captive health check is a useful tool in assessing effectiveness and resilience from an actuarial perspective. This ensures that the captive is maximising its potential in addressing the parent's risk financing needs.

For corporate clients, retention analyses are an extension of pricing exercises. This includes building a simulation model, allowing various limit and retention structures to be explored to find the 'sweet spot' of optimising the retention structure to achieve the greatest premium savings while minimising the retained risk.

Techniques in machine learning and artificial intelligence have extended far beyond the range of traditional actuarial methods, and Artex is uniquely positioned to apply these new, cutting-edge techniques to your business operations.

We understand that each client has distinct business needs and our services are tailored to address those requirements. We will work with you to create bespoke dashboards designed to suit your business needs.

Many organisations have processes that are easily documented and repetitive, yet extremely time-consuming. By automating data processing, Artex can deliver a significant amount of value and cost savings, with benefits including:

• Improved efficiency
• Data conversion
• Reduced likelihood of errors
• Improved audit trail and version control