PwC’s Actuarial Services team use a vast array of both national and global resources that help us take an educated look over the business horizon.
No one knows what lies over the horizon. However, by using data, mathematics and other skilled insights, some people are able to get a better idea than others. Actuarial services are designed to determine what the future may hold and manage any associated financial risk, even when those risks are currently out of view. To do this, actuaries use sophisticated business forecasting and modelling to scientifically paint as accurate a picture of the future as possible.
Actuarial services are perhaps best known for their role in life insurance, general insurance, superannuation and government sectors, though they also help to mitigate business risk in New Zealand’s banking, fund management and various other integral industries.
Actuaries may assist with superannuation, employee benefits and Kiwisaver one day, and perform unit pricing and compensation calculations the next. Their ability to do these at the highest level requires skill, experience and resources that give organisations the best possible view. After all, the higher the platform, the further ahead you can see.
PwC has one of the largest actuarial consulting practices in New Zealand. Our qualified and experienced actuaries come from various backgrounds – including maths, statistics, computer science and economics. As a multi-disciplined team, we assist some of New Zealand’s leading organisations in both traditional and newer actuarial fields.
We use business modelling and forecasting to determine unit pricing, calculate client risk, find valuable interventions in the public sector and much more besides. Whether you’re an insurer, bank, government department or any other organisation in need of a better view, PwC actuaries are on hand to tailor a solution and help you take a peak over the horizon.
Flexibility is a key strength of ours, and we can provide actuarial services as and when you need them – whether that’s doing the work entirely or as an independent guide for your internal team. And because we’re part of the wider PwC network, we have an excellent vantage point of global affairs. With great resources, experience and a worldwide platform, PwC actuaries have everything on hand to give your organisation the best possible perspective.
Unfortunately, we all know accounting is not as easy as it first sounds. The equation of income minus expenses only gets you so far, while new reporting standards often bring fresh challenges. For instance, the New Zealand International Financial Reporting Standards (NZ IFRS) have led to an increase in uncertain future transactions, which need to be captured as part of an entity’s financial statements.
But not to fret: PwC’s Actuarial Services team can help in numerous ways.
We can model loan repayments and debt accruals, taking into account the likelihood and probable amounts of future payments, and discounting appropriately to calculate a fair value for accounting purposes. Other organisations may be struggling to adjust the value of their assets as their carrying amount exceeds the likely recoverable amount (as per NZ IAS 36). We can help them estimate the likely recoverable amount by analysing past data and projecting future payments to extract the numbers organisations need for their financial statements.
These are just a few examples, though our actuaries are happy to confront any accounting valuations challenge you may have for them.
The banking sector has been thrust heavily into the spotlight prior to the Global Financial Crisis. While New Zealand was largely unaffected compared to the rest of the world, that doesn’t mean our banks can afford to be any less vigilant when it comes to the damaging implications of poor lending – both financially and in terms of reputation.
That’s just one thing that PwC’s Actuarial Services team is trying to confront. We use financial mathematics and an analytical eye to help banks understand the risk drivers within their lending portfolio. With that comes better decision-making, easier regulatory reporting and a chance to avoid the mistakes of others.
We can also help by assessing your credit risk or capital requirements, and by assisting in the development of your own internal modelling resources. Our job is to use sophisticated forecasting and modelling to look for potential risks and opportunities ahead of time – whatever they may be – so our clients can act on them in the most appropriate way.
The future is uncertain, which makes forecasting critical. So much can depend on a good business decision, so it’s important to be as informed as possible. We can help you quantify the risks and outline potential future scenarios so you’ll face the future with confidence.
Our models range from incredibly sophisticated forecasts, designed to eke out every detail from a possible scenario, to the relatively accessible, which can be used by a client’s internal teams.
We also offer flexibility, either as a team handling your entire actuarial project or as an outsourced addition to your existing business capabilities.
PwC’s Actuarial Services team can fix errors in unit pricing as well as calculate and improve compensation processes within fund management – either by ourselves or as an experienced, independent guide to your internal capabilities.
Unit pricing is a complicated process, especially when something goes wrong. We can help you fix errors, calculate compensation to investors and improve underlying operations to reduce the risk of future miscalculations.
At the same time, we can give you experienced advice on systems and methodologies, and help with other compensation processes, such as calculating the refunds of foreign exchange fees on credit cards.
We have a history of working with clients to help detect and fix errors through independent quality assurance, though we can be just as effective at proactively transferring our knowledge to strengthen the way you work.
Our team has vast experience helping insurers to improve their products, services and internal workings. Our general insurance actuarial services typically include:
Our actuaries for general insurance provide valuations for clients. Whether that’s for financial statements or to help guide business decisions, we have considerable experience in the valuation of claims liabilities for insurers of all sizes and lines of business.
For all the hard work it takes to get an offering ready for sale, if the pricing is wrong, it can all be for nothing. Price it too low and profits and solvency are endangered; too high and the market won’t respond in your favour. PwC’s actuarial services for insurers includes a review of your pricing to provide assurance, insights and resources when you need them.
New Zealand’s regulatory burden is getting heavier, and the brunt of it lies on the backs of insurance players themselves. We’re here to help you show the Reserve Bank how readily and accurately you can meet your regulation requirements, which may involve – for instance – preparing solvency returns, carrying out financial condition reports or completing your full license application.
PwC’s actuaries can analyse your strategic position, highlight current market trends, identify potential threats and spot opportunities that can keep your business in the ascendancy.
That being said, we aim to rise to any actuarial challenge. If you have a task for us, we’re confident that we can meet it using our people’s experience, skills and the global perspectives provided by being part of the PwC network.
We know better government decisions can be made with accurate long-term forecasting and modelling of the effects of policies and costs. In turn, smarter decisions can lead to more effective use of capital and – ultimately – more favourable public reaction. The business of government may be infamously complicated, and the future never completely certain, but actuaries are on hand to help.
As part of our Actuarial Services, PwC works with a wide range of government departments (both central and local) to consider uncertain future events. We forecast payments, such as the repayment of loans and debts as required for financial reporting, as well as model people and their flows between different circumstances. On the more niche side of our abilities, we can forecast other, more specific scenarios, like the impact of leaky buildings, for instance.
We also provide independent reviews of existing models and forecasts, or of the processes underlying them.
Some of our models are extremely sophisticated and used for scenario testing, but others are relatively simple and can be operated by your staff. Whether you need us to do the actuarial work for you or provide independent support and guidance to your internal teams, we have the flexibility to help how and when you need us.
We know life insurance from the inside out. Our team has worked for life insurance companies directly and with them in consulting roles, allowing us to help those in the industry through a range of actuarial services. These generally include:
We work closely with PwC teams around New Zealand to offer life insurers strategic advice, life insurance tax assistance, accounting advice and risk management. For needs that extend beyond Aotearoa, we can also tap into the global perspectives and resources provided by the PwC network worldwide.
We know how important your people are, and how important superannuation, Kiwisaver and employee benefits are to them. It’s a source of motivation and support to people, and often a differentiator for hiring companies.
It’s why we offer help in the processes of superannuation and employee benefits as part of our actuarial services. PwC’s Actuarial Services team commonly assists organisations with:
However, we’re happy to take on any challenge. Our team has considerable experience in reporting under NZ IAS 19 and has already helped a wealth of organisations by looking at superannuation, employee benefits and Kiwisaver with an acute actuarial eye.