Getting any new business off the ground is challenging, with many hurdles—both predictable and unpredictable—to clear the way for future success. For a new life insurance company, building actuarial processes is an essential aspect requirement of the business that needs to be done well from inception, even as the initial portfolio may be small. Establishing an in-house actuarial team can be excessive and expensive in the formative years.
When Milliman’s client, a new life insurance company based in Asia, wanted to develop strong processes around its foundational actuarial work, it sought a partner to provide support during the crucial growth phase. Such a partnership enabled the company’s senior management to focus on building their business while ensuring that reporting and other actuarial tasks were carried out in compliance with regulations, and to a high standard—all while managing costs and maximizing efficiency.
In its search for a partner, the client looked for:
- Valuation expertise in both local and global markets
- Effective communication and collaboration skills
- Flexibility to respond to changing needs
If you’re like other new insurers in this situation, you may be thinking:
“How do we get the support we need to take care of regular ongoing reporting while we build our business?”
“It’s essential that we get accurate and reliable results, in a timely manner, in order for us to make important decisions in our business.”
Partnering with Milliman provided the client with the ability to develop strong actuarial processes—including the development of actuarial models to support its quarterly reporting—from scratch. Milliman’s hybrid approach to outsourcing paired onshore consultants near the company’s base with offshore teams to foster effective and cost-effective collaboration and superior service to the client.
Expertise in local regulatory environment
Consultants within Milliman’s office in Singapore supplied actuarial expertise from a local perspective, while also incorporating global best practices. The Singapore office acted as the primary interface with the client and took charge of higher-value actuarial processes, such as pricing, ensuring seamless communication, and accessibility during local business hours.
Close collaboration with offshore teams
Milliman India in New Delhi worked closely with the Singapore office to develop the models needed to support the client’s quarterly reporting. Subsequently, Milliman India worked closely with the Singapore office to carry out quarterly valuations, model maintenance, and other ad hoc work.
High-quality results and responsiveness
The extensive collaboration between onshore and offshore teams enabled Milliman to quickly address the client’s needs and deliver high-quality results in a timely manner.
Beginning from its inception, the client outsourced all its actuarial functions, including the Appointed Actuary role, to Milliman.
Initially, the Milliman team based in Singapore worked closely with the client’s team to understand its requirements. The team in Singapore worked in close collaboration with Milliman New Delhi during the new company’s initial growth phase to develop quarterly valuations, maintain the actuarial model and other ad hoc work. The global team joined forces to build a new actuarial model for the client using FISⓇ Prophet, which the Indian team maintained and used for quarterly reporting.
The client recognized the ability of Milliman’s global team to:
- Deliver accurate and reliable results within stated timelines, often exceeding client requirements and expectations
- Be proactive and responsive to urgent client requests
- Provide comprehensive support for all projects undertaken
- Effectively present results to top management when necessary
After several years, and once the new life insurance company had successfully scaled its team, Milliman worked with its management to develop a transition plan to transfer the actuarial model and the quarterly reporting process back to the company. Milliman’s global team trained company personnel on the modeling, reporting, and other processes developed during the growth phase, and offered continued support until the client felt comfortable taking all actuarial processes fully in-house.