FTI Consulting insurance services

Transcription

1 INSURANCE SERVICES

2 FTI Consulting insurance services The insurance industry is operating in a complex and dynamic global environment. Low interest rates, the demand on capital and ever-changing regulation requirements are challenging the industry like never before. To succeed in these testing times, the industry must innovate to meet those challenges, taking a holistic view of customers, the market and opportunities. FTI Consulting s Insurance team helps you meet today s challenges through services designed to uncover root cause issues, enhance performance and provide lasting value. We are at the forefront of the insurance industry, supporting the strategic requirements of boards and senior executives to govern and guide, protect assets, improve business operations, achieve performance goals, and meet compliance requirements. MULTI-DISCIPLINARY TEAM Our team have first-hand experience and practical industry knowledge across management, financial, operational and technical functions, and cover a range of disciplines including: Actuarial Business transformation Corporate advisory Data analytics Forensic investigation Litigation & claims Restructuring Performance improvement GLOBAL REACH We have over 100 professionals located in the key European insurance centres of London, Dublin and Zurich, and across four US offices. Operating from these principal centres, we can also support clients internationally through FTI Consulting s global network of offices. MEETING YOUR OBJECTIVES Our deep experience and business acumen means we avoid a myopic focus on isolated strategies which lack industry insight or real-life applicability. Instead, our consultants are strategic thinkers who provide practical solutions focused on meeting your business objectives. SUPPORTING YOUR BROADER NEEDS At FTI Consulting, we are home to world-class economists, valuation experts and communication specialists and can draw on this wealth of expertise to support your broader needs such as: Dealing with direct claims Managing dispute valuations Communicating effectively with stakeholders Navigating complex regulatory requirements FTI Consulting, Inc. 1

3 Service offerings Services to insurers, reinsurers and investors Working with insurers and reinsurers, lawyers and investors, we help formulate strategies and execution plans, always seeking the most relevant choices. Our solutions focus on people, technology, processes and controls, and include associated governance requirements. Analytics & Performance Improvement M&A/ Corporate Advisory Actuarial Solutions We enable timely analysis, development and implementation of strategies and plans that support business objectives relating to M&A, restructuring, customer propositions, product development, and outperforming competitors. M&A/CORPORATE ADVISORY Our actuaries enable management to understand, address and seek opportunities from risks and exposures. We measure and manage those risks and exposures, uncover and quantify opportunities, develop profitable products, optimise financial and operational functions, and support litigation. ACTUARIAL SOLUTIONS We work closely with you throughout the engagement, transferring knowledge, solutions and best practices that offer immediate measurable results and deliver lasting value. Operational Risk Resilience & Continuity Your Needs Governance, Regulatory & Compliance M&A advisory Target identification & diligence Corporate advisory Restructuring/Integration Business planning Product analysis & planning Marketing & distribution analysis & planning Strategic communications Tax services Modelling Dynamic financial analysis Reserve estimation & guidance Pricing & rate-making Reinsurance & risk management Arbitration & litigation support Statement of actuarial opinion Reviewing & estimating business risks Implementation & support on actuarial & modelling tools Claims & Financial Risk Management Litigation & Dispute Resolution Pension Advisory We advised insurance industry investors, who were looking to strengthen their global footprint and scale by targeting a crossborder acquisition with operations in the US and continental Europe. This included a benchmarking study on operations and IT functions with key peer group competitors, model validation with sensitivity analysis and post-transaction performance improvement targets. We were retained by a reinsurer as actuarial expert in the English High Court. The reinsurer was in dispute with a US Asbestos Bankruptcy Trust over a policy covering a layer of the cost of asbestos claims above a retained limit. We reviewed the opposing expert s analysis and formulated responses for the expert report. Our analysis demonstrated serious flaws in the opposing expert s report and the court eventually found in favour of the reinsurer. 2 FTI Consulting, Inc. FTI Consulting, Inc. 3

4 Services to insurers, reinsurers and investors CLAIMS & FINANCIAL RISK MANAGEMENT ANALYTICS & PERFORMANCE IMPROVEMENT LITIGATION & DISPUTE RESOLUTION GOVERNANCE, REGULATORY & COMPLIANCE We help you reduce financial risk by optimising claims operations, and maximising capital efficiency and agency ratings through our analytics-based capabilities. We assess process, financial risk exposures, reserve adequacy, and alternative risk funding mechanisms. We enable strategic decision making by management around their business transformation initiatives from functional process improvements to more complex programmes. Our team offers comprehensive financial and operational insights to determine deficiencies, make recommendations and achieve timely, measurable results. We offer support across the complete dispute lifecycle, from initial inquiry, investigation or pre-filing, to resolution and postresolution monitoring. Our consultants perform analysis of damages and scenario reconstructions, and provide advice and consulting support for actions. We help establish governance frameworks that provide guidance and controls for assessing impacts of regulations in existing and new markets. We also address regulatory compliance and examination issues, and review and develop reporting and communications capabilities. Claims technical reviews Claims leakage Claims re-engineering Claims & underwriting expense containment Capital management Investment portfolio assessment Alternative risk funding Reserve adequacy Enterprise performance improvement Business transformation services Customer acquisition & retention Strategic expense management Change management Business intelligence & predictive analytics Portfolio analytics Information/data quality Enterprise data management Claims litigation & dispute resolution Contract dispute resolution Expert testimony Fraud investigation e-discovery readiness, management & compliance Intellectual property Claim & damage valuation Conduct risk Customer outcomes Compliance programs Governance frameworks Solvency II pre- & post-implementation Internal audit Regulatory interpretations & remediation We helped develop the emerging risk process for a large international insurance group. This included the hierarchical reporting of emerging risk from subsidiary companies up to the Group Level Risk Management Committee, and development of an Emerging Risk Register. We also designed the quarterly Group Level Board and Risk Management Committee report covering high-level risk appetite metrics, risk tolerances, stress tests and insurance risk. We developed and implemented the strategy and analytical capabilities for a large insurance group s motor and home businesses. This included developing an outbound sales operation, mining leads from customer data and executing customer campaigns via multiple channels. Within three months of implementation, the group saw a 30% uplift in monthly sales from its direct channels. We were appointed the expert on a regulatory investigation into the conduct of a number of professionals involved in reserving claims. This involved reviewing a large volume of documents and reports and evaluating the reserving practices of the insurer. We provided an expert report setting out opinions on the insurer s reserving practices and the role of each individual under investigation. We performed an independent assessment of a mediumsized SME/wholesale broker within its speciality business. This included a detailed review of the broker s internal systems and controls, identifying areas for improvement. We also reviewed the broker s customer relationships and commentary to the board as to its approach to conduct risk and good customer outcomes. 4 FTI Consulting, Inc. FTI Consulting, Inc. 5

5 Services to insurers, reinsurers and investors Services to lawyers PENSION ADVISORY OPERATIONAL RISK, RESILIENCE & CONTINUITY LITIGATION & DISPUTE RESOLUTION Our pension consultants guide decisions, optimise performance and ensure compliance to meet current and long-term objectives of retirement and employee benefit plans. We address critical issues such as de-risking, liability risk management and fiduciary responsibility. Strategic financial assessment & risk analysis Independent compliance, performance & actuarial audits Plan restructuring analysis Arbitration & litigation support Strategic communications We performed an in-depth due diligence assessment of a large newspaper group s pension plans to help the board determine how best to handle the plans if they sell the business. We independently reviewed all pension calculations, assessed actuarial methods and assumptions, valued liabilities, analysed feasibility of terminating the plans, and outlined financial implications to the buyer and seller. The board then used our comprehensive report as an objective guidebook for proceeding with its sale process. We help you develop business resilience governance and operating models, and respond to risks that threaten your physical plant, critical operating functions and the staff responsible for them, during disruptive crisis events. Accordingly, our work is practical, standards-based, and aligns with key governmental and regulatory guidance. Business continuity planning (BCP) Continuity of operations planning (COOP) Airport BCP Emergency and crisis management solutions Information security & risk management Integrated cyber-security risk management IT disaster recovery planning Operational risk & emergency management We developed a business continuity governance, organisation and incident management model for the operating subsidiaries of a global insurance company. We built integrated business continuity plans for the recovery of essential operating functions, a global IT disaster recovery plan, and emergency management plans for each physical location. FTI Consulting s litigation professionals provide a diverse range of skills, expertise and testimony experience with the ability to scale from small up to the largest cases. Our range of disciplines include actuarial, accounting, forensic investigation, data analytics, and claims and reinsurance professionals. We have acted on contentious, multi-jurisdictional direct and reinsurance matters for insureds, insurers and reinsurers. On the noncontentious side, we specialise in corporate finance transactions and legal restructuring, including insurance business transfers and Schemes of Arrangement. contentious cases Analysis & review Develop investigation strategy Perform research; data & document analyses Quantify potential losses Expert witness cases Prepare expert opinions Serve as expert witness and deliver expert evidence Provide expert reports Assist in witness preparation Critique opposing expert analyses Arbitration/mediation Acting as technical experts Arbitrator appointments non-contentious cases Due diligence services Reserve assessment Part VII transfers management & independent expert functions Scheme of Arrangement strategy, Scheme officers, management and implementation An offshore special purpose reinsurer was unable to substantiate amounts claimed by a London market entity relating to a block of Asian property and accident business. We investigated how the amounts claimed were calculated and analysed the electronic data of the underlying transactions. We also provided an opinion in the expert report regarding the proper basis of calculation of the claims, the allocation of claims to each reinsurance contract and the amounts due between the parties. The disputed matters with opposing experts were dealt with in a joint report to the arbitration panel, and the agreed amounts were consistent with our expert s report. The dispute was settled immediately prior to commencement of the hearing. 6 FTI Consulting, Inc. FTI Consulting, Inc. 7

6 Why FTI Consulting for insurance services? About FTI Consulting As one of the top independent consultancy firms to the insurance industry, clients benefit from our deep industry knowledge, first-hand experience and expert insights that help meet your business goals. Internationally recognised as leading insurance experts by Who s Who Legal: Insurance & Reinsurance We are not an accounting firm with a singular focus on financial transaction risk and controls, but instead offer advice and solutions that benefit the whole business. Being independent from broker or auditing relationships, we are uniquely positioned to give impartial advice and assistance. We are the trusted advisors to 20 of the world s top 25 insurers. FTI Consulting is a global business advisory firm with more than 4,400 employees in 27 countries, from every major financial centre to every corner of the globe. We serve our clients wherever and whenever challenges and opportunities arise, helping them to address current threats and seize opportunities. We deliver solutions that are effective and sustainable in areas including valuation, risk management, restructuring, mergers & acquisitions, regulation, competition, disputes, litigation, technology and strategic communications. Our integrated, multi-disciplinary team comprises a mix of skilled specialists who can draw on the wider expertise across FTI Consulting. FTI Consulting s forensic heritage ensures our advice is always supported by a robust evidence base grounded in rigorous analysis. Leading IT solutions provider encompassing largescale transactional data management, data quality improvement and our award-winning e-discovery platform Ringtail. FTI Consulting offices 8 FTI Consulting, Inc. FTI Consulting, Inc. 9

7 BACK Ian Marshall Managing Director +44 (0) Mark Higgins Managing Director +353 (0) Petra Wildemann Managing Director +41 (76) About FTI Consulting FTI Consulting, Inc. is a global business advisory firm dedicated to helping organisations protect and enhance enterprise value in an increasingly complex legal, regulatory and economic environment. FTI Consulting professionals, who are located in all major business centres throughout the world, work closely with clients to anticipate, illuminate and overcome complex business challenges in areas such as investigations, litigation, mergers and acquisitions, regulatory issues, reputation management and restructuring FTI Consulting, Inc. All rights reserved.