Actuarial Consultancy
EMB has established a first-rate reputation for technical excellence in actuarial engagements, covering all aspects of reserving, financial modelling and pricing. Our clients cover personal lines, commercial and the London market, from large multinationals to small Lloyds’ syndicates
Pricing for Personal Lines
Pricing has been a specialism of EMB from the start. Pricing is more than setting premiums. Increasingly it is about how price interplays with customer behaviour to drive profit - the propensity to buy, to renew, to purchase other products. A coherent pricing strategy through the customer lifecycle is essential to achieve an array of business goals, and must recognise the differing demands of distribution channels.
As well as insurers, we support brokers, internet insurance sites and other distributors. We often support rapid price innovation but equally can help with process integrity and pricing problem solving. We recognise that innovative pricing is no panacea on its own and will provide clients with actionable insights to turn innovation into sustainable bottom-line benefits.
Commercial & London Markets
We can also advise on the commercial lines sector written in the London Market, and in other major insurance centres around the world. From insurance to reinsurance, from P&I Clubs to Lloyd’s, from directors and officers/errors and omissions to general liability, from energy to hull and from property to aviation we have it covered with our specialists.
We are at the forefront of designing and deploying tools and techniques for cycle management, rate monitoring and the critical area of benchmark prices. We understand that whilst statistics and technology can never replace underwriters, the best pricing solutions come from combining the two disciplines. We are experts in getting the most out of your pricing framework and making sure it is aligned with your reserving and capital functions.
Run-offs, Commutations & Schemes of Arrangement
Run-off is a rapidly evolving market segment with very significant values at stake. Whether a portfolio is within a live company or the company is fully in run-off there are a number of strategic options available.
EMB can advise if a detailed technical approach is required or alternatively if a more street-wise pragmatic approach is most appropriate. We will help to ensure that the strategy chosen is appropriate for the liability characteristics and free assets of the whole entity, and will assist in its successful implementation.
Our legacy team, one of the largest and most experienced in the market, covers the breadth of runoff and legacy issues, from reserving, capital modelling, latent claim reviews, commutation, acquisition support and expert witness, through to portfolio transfers, sales or schemes.
Financial Modelling
EMB is a world leader in assisting insurers and reinsurers with financial risk modelling. Our success stems from the quality and experience of our people, our understanding of clients’ needs and unrivalled software products. Our clients are diverse and include many of the largest global insurers and reinsurers, many entities in Lloyd's, specialist insurers and regulators including the Financial Services Authority.
Financial modelling is not just about building a model; it is a way to understand the dynamics of a business so that management can make better informed decisions to increase profitability and improve efficiency.
A modelling exercise can amount to a root-and-branch review of the entire business. The result is an in-depth understanding of a company’s internal dynamics which can benefit every area of decision-making. Through this our clients are better equipped to manage future uncertainty and identify the most appropriate business strategies to meet their objectives.
EMB helps companies implement and maintain an effective financial modelling regime.
As well as highly experienced actuarial staff, we also provide business consultancy services to ensure that the modelling work forms part of a successful risk management function and is embedded within the organisation.
Reserving
At EMB we pride ourselves on not only high quality technical analysis of reserving but also understanding the business written by our clients. Our clients include personal lines businesses as well as specialised businesses such as Lloyd’s of London and reinsurance companies.
We take the time to examine the available data and perform our analysis at the appropriate level of detail, factoring in our market experience.
Far from being merely a regulatory requirement, first-rate reserving can be a powerful strategic tool providing new insights into underwriting and claims processes. Among other information, it offers:
- An early sign of data or processing problems
- Warning of underperforming classes
- Definition of new claim trends
- Support for internal capital models
Such information arms senior management to make better informed decisions about issues such as pricing, capital allocation, business planning and reinsurance purchasing. And increasingly, forthcoming regulatory changes, such as Solvency II and International Accounting Standards, place greater emphasis on quantifying reserving uncertainty.
At EMB we developed the first Windows-based reserving software, EMB ResQ, and we have continued to innovate with the introduction of stochastic modelling in reserving, incorporating ‘Bootstrap’ technology within EMB ResQ.