A N A L Y T I C S

Technical Provisions applicationPart of the dynamiT modular frameworkdynamiT is a cutting edge, modular software platform which streamlines the actuarial and financial processes within your organisation. In addition to reducing the resource requirements to run your processes, it provides a wealth of analytics and management information to better understand and steer the business.

The platform consists of a series of modular applications, which operate either on a stand-alone basis or through seamless integration with each other. Due to the advanced technology supporting the platform, it is able to link into your data systems to populate the applications and can push calculated results back to your data stores.

The “Technical Provisions” module in DynamIT calculates the Solvency II technical provisions based on the data you use to run your business. It provides a robust environment for the calculations, stores the results in a single location, and enables easy reporting and detailed analytics that are not possible in a spreadsheet environment.

The applications within the dynamiT framework are modules aimed at simplifying logistically difficult financial and actuarial processes, and at giving organisations concrete information to make better decisions.

By simply importing your standard data used to run the business into the application, the technical provisions are calculated by underwriting year, accident year, class, Solvency II class, territory, and any other level required.

To populate the TP Application, it can integrate directly into your existing data hubs and business programs, or can read from a pre-defined Excel template.

All input and calculation files are stored within the robust database for ease of comparison and analytical interrogation.

Outputs can be interrogated through the in-built analytics and reporting tools, can be pushed to your own business information application, or simply exported back to Excel.

Analytics that aren’t possible in spreadsheet environments are made easy. An analysis of change from one calculation to the next, projections of the technical provisions years into the future or slicing and dicing the calculations

by class / territory / risk code are all automatically performed.

The application integrates seamlessly with the other applications in the DynamIT framework, meaning that most of the Standard Formula calculations are performed simply by selecting a previously calculated Technical Provisions project.

Regular software updates and technical support ensures the calculations reflect the latest regulatory and market best practice.

The dynam.iT framework

The Technical Provisions application

Technical Provisions application

our technical provisions application enables your business to perform quick, robust and accurate calculations of the solvency ii technical provisions, without resorting to large unwieldy spreadsheets. The software will be configured to your company structure, reflecting your legal entity and class set-up.

All reporting and analysis can be customised to suit your requirements, and can integrate with your internal business analytics.

The unique over-arching platform design means that we can perform rapid prototyping of new applications and quick updates after updated legislation or new client

requirements.Our applications can integrate tightly into your enterprise architecture to enable rapid and automatic data population of the modules, and can push calculated results into your data stores or data warehouses. All modules are tightly integrated within the DynamIT platform, enabling data to flow between the applications.

Technical Provisions

module

standardformula module

Assetmodule

businessplanning

Asset liabilityoptimisation

capitaloptimisation

dynam.iT

some examples of the analytics and reporting capabilities of the Technical Provisions module of the dynamiT framework are given below.

reporting and Analytics

demonstration

Analysis of changeThe Analysis of Change is a very powerful tool for providing insight into the drivers of changes in TPs between calculations. The analysis allows users to compare the current results to any other technical provision that has been calculated in the framework. The report will highlight the key reasons for the changes between the calculations, including the impact of a change in the reserves, yields curves, currency movements or other factors. In addition, the user can drill down into a class of business or currency to investigate the changes at more granular levels. This is a key tool to allow management to understand the underlying drivers, and is typically not an analysis that is possible in spreadsheet intensive solutions.

Lloyd’s reportsThe built-in Lloyd’s Reporting functions provide the calculated technical provisions in the correct form to populate the required Lloyd’s reporting templates. These can be exported to Excel at the click of a button, making the regular reporting process far easier. These reports are available at an aggregated level or at a granular level by risk code and currency, required for the annual submissions. In addition to the Lloyd’s reports, any standard reporting template can easily be built into the application, and can be exported to Excel, streamlining regular internal reporting.

reserve to TP WalkA key reconciliation that management and regulators ask for is between GAAP reserves and the technical provisions. The application automatically produces a reconciliation between an “earned” view of the provisions calculated from the uploaded ultimates and patterns, and the technical provisions. This reconciliation between the different reporting bases allows management to drill down into the main drivers of the change between the current balance sheet and the Solvency II balance sheet. The graphs and tables can be easily exported to Excel for inclusion in standard management information packs. These analyses are available at a high aggregated level or a more detailed granular level.

contact us for a demonstration of dynamiT framework and Technical Provisions application. our team will take you through the key benefits, show you how it can be integrated into your operations and talk you through a case study of how we have implemented the framework at a Managing Agency.

Technical Provisions application

Apart from the analyses highlighted above, the application also allows easy projection of technical provisions from any time period to any other time period, granular breakdowns of the calculation in each area and stress & scenario testing of the results to changes in the assumptions.

41 Lothbury, London, EC2R 7HG 4 Herold Street, Stellenbosch, South Africa 7600 www.dyna-mo.com

AdriAn Ericssonadrian.ericsson@dyna-mo.com

+44 7990 715 817

HAnnEs vAn rEnsburghannes.vanrensburg@dyna-mo.com

+27 84 651 9824

AdriAn Ericsson bsc FFAAdrian is a qualified actuary with diverse experience of applying risk modelling in the insurance market sector. He has worked at executive level in both non-life insurance as well as life insurance, and in both the UK and South Africa. Prior to co-founding Dynamo Analytics, Adrian was the chief actuary at Argo International, a senior manager at Deloitte and headed the reserving function for Swiss Re Africa.

HAnnEs vAn rEnsburg bsc (Hons) FiAHannes is a qualified actuary with a strong technology and analytical background. He has a broad range of experience in the areas of dynamic financial modelling and the development of risk management and insurance underwriting software tools. Prior to co-founding Dynamo Analytics, Hannes was a consultant in the “Risk Consulting and Software” division of Towers Watson and a pricing actuary at Zurich Global Corporate insurance company in London.

AndrEW TinKLEr bscAndrew Tinkler is a database specialist and software developer with over 25 years’ experience in building business software solutions across a range of industries, most notably financial services. He led the development of the very first Basel Capital Requirement calculator for an international investment bank.