Adopting a Culture of Innovation in a Time of Industry Uncertainty
With the end of the year in sight, it is an appropriate time to consider what we have achieved in the past 12 months, and where we are headed next. It's been a tumultuous year for insurers, and a great many challenges face us all as we head into 2021.
The global pandemic looks set to be with us for some time, even with the recent positive news of progress within the vaccination development. This hereby presents both operational and modeling challenges for insurers. An uncertain economic environment puts enormous pressure on capital and revenues; and actuarial teams must still grapple with the dual pressures of reporting and preparing for new regulation simultaneously. Meanwhile, an explosion of data means models are more complex than ever, but under similar, if not more restricted, budgets and timescales. There is much work to be done before any element of complacency can resume.
As a company, RNA Analytics is committed to moving with the markets, constantly improving and innovating, and we have spent much of this year working to enhance our distribution capability, improve our end-to-end process and governance features and reduce model memory requirements. We do this with, and for, our clients. With clients at the heart of what we do, we have been working to expand our offering to the market by further simplifying the complexity of actuarial processes, helping to reduce the amount of manual intervention in production environments, improve processing time of reporting periods, and to provide greater oversight and audit.
Whether starting out with a new software system, developing and pricing new products for launch or implementing new regulations, building accurate and realistic models as quickly as possible is vital to organizations everywhere. That is why we are so excited to be able to announce that, as well as providing standard code for a range of life products and for regulatory needs such as IFRS 17 and Solvency II, our standard code library is also being expanded into non-life modeling, allowing companies to have a single tool for all life and non-life modeling and reporting.
Our global client base has been instrumental in this latest innovation, which follows hot on the heels of the recent update to our R³S actuarial and risk modeling software. Whilst a key focus of this was the overall improvement of the performance of the software suite, some of the new functionalities have been built specifically to support the new non-life library. We pride ourselves on listening to the market and have been proud to work alongside our clients in shaping a tool that truly delivers future-proofed return on investment.
The new solution, although standardized, can be tailored to offer a bespoke system and accommodate any existing customer requirements. As such, insurers can expect to be able to offer more tailored recommendations, enjoy a constantly improving understanding of customer behavior, and gain greater market knowledge and therefore profit through better managed portfolios − even in complex and computationally demanding environments.
As with all other aspects of standard code, the new non-life library has a modular design with a collection of modules known as building blocks. These are relevant to most markets and can be fitted together to create the reporting calculation routines required. Designed to ensure that the code is fully modular and extremely flexible, the building blocks are collections of common calculation routines, that interact with one another seamlessly, allowing a plug-and-play rapid implementation. The non-life library covers the reserving calculations of incurred claims liability and for the liability of remaining coverage.
The consistency provided by the shared building blocks enables multinational users to report across all offices in a standardized manner and enables the models of different business units to share the same code base. This is a key advantage in international projects and for risk management, as well as for smaller companies wanting consistent model code across all functions. Now enabling reporting processes of life and non-life to all be completed within R³S Modeler, further enhancing these advantages of having a consistent common tool and reporting process.
As the world begins its recovery from the pandemic, it is our hope that we can be a part of that process with our clients. And we won't stop there. Our new non-life library is part of a series of developments that will ensure we serve our clients through the good times and the bad, and as we head into a new year, we will be focused on helping insurers find the best outcomes, whatever the circumstances.
For more information on RNA Analytics’ services please visit www.rnaanalytics.com or to download our brand new research paper titled ‘The Changing Insurance Industry’ visit here.