We discuss how insurers can benefit from automation of the actuarial process, and how a combination of automation and outsourcing can help reduce costs.

Outsourcing of actuarial demands can be an effective solution, but companies need to carefully consider an engagement’s structure, risk, and resource allocation.

Outsourcing has been popular among insurers for decades, but in this post-Solvency II era, insurers must develop a deeper understanding of where third-party providers can add value for their business.

Over the past couple of years, there has been renewed interest in actuarial outsourcing, with an increasing number of insurers and reinsurers either setting up new outsourcing units or expanding their existing ones. Milliman conducted a survey to assess trends in life insurance actuarial outsourcing. Outsourcing units of life insurers and reinsurers with operations in the Americas, Europe and Asia were surveyed.

As their products evolve to better fit customers’ needs, life insurance companies face the ongoing challenge of managing products that have been discontinued but still have active policyholders on the books.

For a large life insurance company, the day-to-day reporting work involved with actuarial operations is foundational but repetitive.

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.