Actuarial Advisory Services

KPMG has three actuaries on staff providing advisory and compliance
services to companies operating in all segments of the Bermuda market from single parent captives to Class 4 commercial reinsurance companies.

Feasibility Studies
We perform retention, pricing and cash flow analysis to help companies select the most cost effective and capital efficient underwriting program to place into their captives. This includes analysis of retention levels and reinsurance purchased.

For established companies we can provide periodic reviews of insurance programs, including retention, capital adequacy and capital utilization studies. This provides information to help you
maintain the efficiency of your captive throughout the various stages of the insurance cycle.

Reserve Studies
Reserving is a complex and subjective process involving the analysis of many variables including specific loss history, industry factors, court decisions and settlement practices. Establishing a reliable reserve estimate is critical to the financial reporting process, regulatory compliance, cash flow and ultimately the viability of an insurance company. We help clients in this complex area by performing detailed actuarial analysis using specific loss history as well as industry results to develop comprehensive loss reserve studies which provide the basis for setting reserves.

In addition we can analyze reserves to identify the key components and key drivers of development to help clients understand the factors that are impacting losses. With access to industry databases we help clients benchmark against industry standards.

Risk Transfer Analysis
Risk transfer is a concept which has significant tax, accounting and regulatory implications. This determination of risk transfer is judgmental and is often complex. Using detailed analysis together
with simulation and modeling techniques we help clients in their evaluation of risk transfer from accounting, tax and regulatory perspectives. We also assist in structuring programs (pricing and
retention analysis) to satisfy the risk transfer criteria.

Statutory Reporting
Class 2 insurers/reinsurers are required to file a Loss Reserve Specialist Opinion with the Bermuda Monetary Authority on a tri-annual basis, Class 3 and 4 annually. We currently have two accredited Loss Reserve Specialists on staff, who provide opinions for over 40 Bermuda companies.

For more information on our Actuarial Services, please contact Richard Lightowler.