Actuarial Consulting

EMB has established a first-rate reputation for technical excellence in actuarial engagements, covering all aspects of reserving, financial modeling and pricing. Our clients cover personal lines and commercial lines, from large multinationals to small single state carriers.

Pricing for Personal Lines
Pricing has been a specialty of EMB from the start. Pricing is more than setting premiums. Increasingly it is about how price interplays with customer behavior 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 recognize 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 recognize that innovative pricing is no panacea on its own and will provide clients with actionable insights to turn innovation into sustainable bottom-line benefits.

Pricing for Commercial Lines
We can also advise on the commercial lines sector written in the London Market, and in other major insurance centers 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.

Financial Modeling
EMB is a world leader in assisting insurers and reinsurers with financial risk modeling. 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, specialist insurers, and regulators.

Financial modeling 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 modeling 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 modeling regime.

As well as highly experienced actuarial staff, we also provide business consulting services to ensure that the modeling work forms part of a successful risk management function and is embedded within the organization.

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 specialized 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 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 modeling in reserving, incorporating ‘Bootstrap’ technology within EMB ResQ.

Litigation and Expert Witness
EMB has provided litigation support for clients representing insureds, insurers, and reinsurers. EMB consultants have also provided expert testimony in a number of these cases.

EMB’s depth of experience of all areas of general insurance across the world means we are ideally suited to advise on the actuarial element of cases and, if necessary, act as expert actuarial witness.

We will typically start by advising our client on our perception of the strength of their actuarial case and if required, can set out our perception of their areas of weakness. This will allow the client to objectively assess whether to continue with the case or to try to reach a settlement.

We can provide support by reviewing the progress of the case, understanding and commenting on any actuarial models developed and reviewing witness statements.

If you would like further information on how we may be able to assist you, please contact us at  .