WHAT DOES AN ACTUARIAL ASSOCIATE DO?

Published: Nov 7, 2024 – The Actuarial Associate conducts actuarial analyses to support rate filings and recommends rate revisions for Personal and Commercial Auto insurance. This role automates tasks using VBA and collaborates with IT to implement coding changes and system testing to align with product features. The associate also represents the Actuarial Department in discussions with Claims and IT, while performing special assignments and quarterly reserve reviews for designated states.

A Review of Professional Skills and Functions for Actuarial Associate

1. Actuarial Associate Responsibilities

  • Bonus Management: Perform bonus declaration and illustration and crediting interest rate review for policyholders and provide relevant analysis and reports to the management team.
  • Project Analysis: Provide analysis to support multiple project initiatives like bonus enhancement, guarantee charge review, and other analyses.
  • Operations Management: Perform asset share review, fund transfer, and other operations relevant to participating funds.
  • Model Maintenance: Maintain accurate bonus models, perform coding changes, and maintain process and methodology documentation.
  • Testing: Perform User Acceptance Tests for bonus declaration.
  • Rate Setting: Monthly rate setting for large books of in-force business.
  • Tool Development: Develop, maintain, and enhance rate-setting tools.
  • Performance Monitoring: Monitor and report on the performance of the reinsured business, ensuring continued performance.
  • Strategic Analysis: Analyze strategies and suggest actions to manage the reinsured business.
  • Onboarding Support: Support the onboarding of business into management and financial reporting areas.
  • Team Collaboration: Assist as and when needed to other team members.

2. Actuarial Associate Overview

  • Technical Expertise: Technical expertise in IFRS17 topics including PAA and GMA, assumptions, data requirements, and financial statement/position presentation.
  • Methodology Understanding: Understand Munich Re Munich (MRM, head office) methodology.
  • Cashflow Generation: Generate cashflows, produce IFRS17 financials, and provide IFRS17 reserving inputs/assumptions required for MRM modeling.
  • Data Delivery: Delivers data/assumptions for MRM IFRS17 testing.
  • Results Analysis: Analyzes results of MRM testing/modeling.
  • Communication Leadership: Leads regular communications with MRM, including drafting of topics and preparation of discussion material.
  • Insights Provision: Provides insights to MRM regarding Canadian specifics, including OSFI and CIA requirements.
  • Data Understanding: Understand Temple and MROC financial data, working with the Corporate Actuarial team to extract/obtain data.
  • Reinsurance Structure Knowledge: Understands Temple and MROC reinsurance structures and IFRS17 modeling implications, providing input to MRM.
  • Tool Development: Continued development of a local IFRS17 assessment tool, including sensitivity testing and comparison against MRM outputs.
  • Regulatory Response: Provides data/analysis to respond to regulatory IFRS17 requests.
  • Collaboration: Works closely with other IFRS17 leads in Canada and external IFRS17 actuarial resources.

3. Actuarial Associate Tasks

  • SQL/Analytical Skills: Builds rate-setting model in SQL or other tools to support the analysis and determination of rates on new and enforced contracts regularly.
  • Recommendation Skills: Provides recommendations on enforcing rate adjustments to senior managers.
  • Reporting Skills: Works with leadership to provide monthly summaries of the rate analysis, including recommended changes to rates.
  • Research/Data Analysis Skills: Conducts research, and data analysis and prepares/distributes management reports.
  • Finance/Mathematics Skills: Applies principles of finance and mathematics in providing analytical support to Product.
  • Financial Analysis Skills: Analyzes, summarizes, and reports various types of financial information in support of the company's Product function.
  • Pricing Sensitivity Testing Skills: Conduct product pricing sensitivity testing, applying various pricing assumptions in MG-ALFA and using other spreadsheet and database applications.
  • Interpretation Skills: Interprets testing results and summarizes findings.
  • Cross-Department Collaboration Skills: Works closely with other departments to move approved rates into production.
  • Product Modeling Skills: Assists with various product modeling and related projects.
  • IT Project Support Skills: Requests, tests, and approves applicable system changes assisting with IT projects.

4. Actuarial Associate Roles

  • Valuation Skills: Perform and/or review quarterly valuation processes for Group IFRS and Canadian regulatory reporting, including regulatory capital filings.
  • Economic Reporting Skills: Perform and/or review economic reporting processes (for Solvency II reporting), including review of best estimate assumptions, and analysis of changes and sensitivities.
  • Operational Planning Skills: Support production and review of the Operating Plan.
  • Experience Studies Skills: Perform and/or review experience studies and profitability analysis.
  • Gains and Losses Analysis Skills: Perform and/or review gains and losses analysis.
  • Capital Assessment Skills: Support assessment of regulatory and own capital requirements.
  • Control and Documentation Skills: Ensure that appropriate and auditable controls, reconciliations, and documentation are maintained concerning work performed or supervised.
  • Technology Utilization Skills: Utilize technology to perform job functions more efficiently and to further automate the reserving and financial projection processes.
  • Collaboration Skills: Share technology solutions with colleagues and work with the IT area to move ad hoc improvements into a controlled production environment.
  • Project Management Skills: Complete special assignments and projects for the department.

5. Actuarial Associate Essential Functions

  • Automation Skills: Automates tasks using VBA.
  • Rate Revision Skills: Analyzes and recommends revisions in rates for assigned states.
  • Actuarial Analysis Skills: Performs actuarial analysis required to support rate filings with regulatory authorities.
  • Special Assignments Skills: Performs special actuarial assignments requiring professional expertise.
  • Representation Skills: Represent the Actuarial Department in discussions with the Claims Department and IT.
  • Collaboration Skills: Works with IT in coding changes for tools that support the actuarial functions.
  • Rate and Plan Analysis Skills: Analyzes and recommends revisions in rates and rating plans for Personal and Commercial Auto insurance.
  • Research Skills: Performs actuarial analysis and research concerning present and proposed rating plans, proposed or recently enacted legislation, and the pricing of new products.
  • Reserve Review Skills: Conducts quarterly loss and LAE reserve reviews for assigned states.
  • Task Management Skills: Carries out all tasks within the job holder’s level of skill and ability.
  • System Integration Skills: Integrates System UAT to ensure the product setup is in line with product features and terms and conditions.
  • Ad-Hoc Task Skills: Works on other ad-hoc tasks as per business needs.