For a large life insurance company, the day-to-day reporting work involved with actuarial operations is foundational—it needs to be accurate, complete, and delivered in a timely manner. But such process-oriented work is also repetitive, and can take time away from more sophisticated analysis, problem-solving, or other tasks.
Milliman’s longtime client, a large American insurer, needed to increase the efficiency of its ongoing operations. The company was devoting too many valuable resources to recurring periodic tasks like reporting, which followed a set process that could be performed just as well by someone external to the company as by one of their in-house actuaries.
Beyond its main objective of increasing efficiency, the client had a few other key requirements when it came to outsourcing its ongoing operations, including:
- Broad actuarial expertise
- Professional and timely delivery of high-quality reports and other deliverables
- Ease of communication
- Maintenance of control over data and processes
If you’re like other insurers in this situation, you may be thinking:
“The security of our data is important to us, and we don’t want to expose ourselves to additional risks.”
“We want to communicate and conduct business at times when our staff is in the office.”
With teams based in New Delhi, Sri Lanka, and the United States, Milliman provided the high-value actuarial outsourcing that met this client’s needs for efficient, cost-effective, and secure management of reporting and other ongoing operations.
Expertise of senior-level consultants
U.S.-based Milliman consultants serve as the primary client interface, offering familiarity with company operations, market specialization, and expertise, as well as accessibility during local office hours.
All communication takes place during normal working hours for the client, even if the team doing the work is offshore.
High-quality, cost-efficient, and scalable
Milliman is experienced in managing both short-term and long-term projects for clients all over the world. Outsourcing provides additional flexibility and can be easily scaled to accommodate clients’ evolving needs.
The client began by outsourcing its BAU results production within the applicable financial reporting framework on its fixed deferred annuities, fixed payout, and variable annuity lines of business.
The scope of the assignment has expanded over the years, and currently involves:
- Quarterly results production
- Business plan projections
- Sensitivity analysis
- SOX reporting (to ensure compliance under the Sarbanes-Oxley Act)
In addition, Milliman global teams:
- Lead testing of any changes implemented to the client’s processes and/or technology
- Help identify any issues in reporting in time to make adjustments
- Participate in daily management calls during key production periods
- Join senior management discussions when relevant
- Identify and implement solutions to make the process more efficient
Our teams work remotely on the insurer’s own network, ensuring data security and confidentiality. They follow the client’s processes, and stick within its governance framework.
To this longtime client, Milliman outsourcing provides efficient, high-quality business as usual reporting delivered in a timely manner, even under tight deadlines. With its foundational reporting and ongoing operations under control, the client’s in-house staff can focus on actuarial analysis and the more complex objectives that will move its business forward.