Our Services

Actuary Services


Finance Engineering can help to deal with tasks (which are typically dedicated to actuary or risk underwriting / risk management departments in finance sector companies):

  • Reserving - more accurate prediction of claim reserves.
  • Pricing - multi-dimensional analysis of pricing system attributes.
  • Price elasticity - forecasting on changes in sales volume in accordance to tariffs modifications.
  • Bonus-Malus - development or modification of customer loyalty programs.
  • Scoring - development or modification of customer scoring (ranking) systems.

General advantages of our service:

  • Specialized and concentrated experience (focused in most problematic products / topics).
  • Increased accuracy.
  • Faster research and conclusions.
  • Lower workflow for internal experts (limited by monitoring and decisions making, maintenance afterwards).

 

Reserving - consultancy service for more efficient assessment of the claim reserves. Reserving service combines:

  • Review of reserving process (data preparation & quality, reserving granularity & methods, reserving accurateness history).
  • Process improvement (reserving in particular segments, usage of alternative methods, improvement of reporting and communication). Back-testing.
  • IT support on data preparation for reserving tasks (if necessary).
  • Theoretical materials and practical training.

 

Pricing - consultancy service for more efficient assessment of the outstanding claim provision. Allows efficient control of sales volume versus claim ratio. Pricing is extended reserving service package, which covers full cycle of fair pricing calculations. Why it is important to get very deep in pricing tasks? Efficient pricing system creates competitive advantages: more efficient risk spread and eliminated anti-selection effect. Pricing service combines:

  • Review of reserving process (data preparation & quality, reserving granularity & methods, reserving accurateness history).
  • Improvement (reserving in particular segments, usage of alternative methods, improvement of reporting and communication). Back-testing.
  • Risk based price calculations (using our wide knowledge of risk attributes and advanced statistical methods, e.g. multi attributes estimation - GLM methods family).
  • Consulting during implementation of suggested pricing structure and tariffs.
  • IT support on data preparation for reserving & pricing tasks, integration of new risk attributes (if necessary).
  • Theoretical materials and practical training.

 

Premium elasticity - consultancy service, which is dedicated to price elasticity measurement. Investigate more about premium elasticity analysis. Service outcome - clear estimation on further changes in sales volume if some tariffs modification will be implemented. Our service will ensure precise estimations. Premium elasticity service combines:

  • Build up data sets for comparison of old versus new price and quotation versus policy premium.
  • Build up elasticity curves - model definition and calibration, data sets segmentation.
  • Consulting on implementation of research results into daily business routines.
  • IT support on data preparation (if necessary).
  • Theoretical materials and practical training.

 

Bonus-Malus is consultancy service, which target is new or improved customer loyalty program (for single or multi products, closely related to pricing systems). The aim of Bonus-Malus systems in general is set of adequate discounts (minimized decrease of product profitability, less sales costs, higher customer satisfaction) for loyal and profitable customers. Simplified example of Bonus-Malus fragment in MTPL is risk attribute - years without accident, which is typically used in pricing system. Bonus-Malus service combines:

  • Review of existing pricing and discounts systems (data preparation & quality, granularity & methods, loyalty history analysis).
  • Build up data sets for customer loyalty versus prices offered versus profitability analysis.
  • Analysis per various segments using advanced mathematical techniques.
  • Consulting during implementation of suggested Bonus-Malus system (or it's improvements).
  • IT support on data preparation and calculations (if necessary).
  • Theoretical materials and practical training.

 

Scoring is consultancy service, which target is new or improved customer scoring system (for single or multi products, related to pricing systems). Scoring systems assigns ranking (e.g. from 1 to 10) to each customer in accordance to particular debt (loss) risk. Value added outcomes of customer scoring systems are: Risk Based Pricing (more efficient profitability management) and standardized approach on monitoring and communication for customers with the same ranking value (less processes costs). Scoring service combines:

  • Review of existing scoring systems (data preparation & quality, granularity & methods, efficiency analysis).
  • Collection of additional risk (scoring) attributes - we always work with full customer database and pay attention on each potentially important attribute.
  • Build up ranking model - multi-attributes analysis, model definition and calibration.
  • Consulting during implementation of suggested ranking system (or it's improvements).
  • IT support on data preparation and calculations (if necessary).
  • Theoretical materials and practical training.