Deloitte
UConn
Actuarial
Center
Philosophy
&
Marketing
Strategy
Mission Statement
To integrate the academic resources of
UConn with the professional expertise of
Deloitte in order to enhance actuarial
education, training and applied research.
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Philosophy
• Partnership between UConn & Deloitte is
dynamic
• Director of the UConn Actuarial Center is
an employee of both Deloitte & UConn
• All the activities of the Center attempt to
balance both the education and research
goals of UConn as well as the consulting
and business advisory services of Deloitte
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Industry Trends
US
• Shift towards investment oriented products with guaranteed options
- Variable annuities with GMAB, GMIB, GMDB riders
- Variable life with no lapse guarantees
• Focus on retirement products
• Focus on Principle Based Reserving and use of company’s own
experience to set minimum reserves
• Enterprise Risk Management
Developing Economies
• Strong insurance infrastructure and good risk management practices
• Market conduct practices
• Insurance products for local needs.
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Marketing Strategy
Two components :
A. Insurance Infrastructure Development
B. Student Outsourcing Services
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Marketing Strategy A
Insurance Infrastructure Development
3-tiered approach:
1.
Setting up an Institute of Risk Management at a top university in a
developing country to incorporate:
a.
b.
c.
2.
3.
A unique academic degree program in Actuarial Science, which includes
a curriculum of education in the fundamental theory of Actuarial Science
as well as formal practical training using state of the art actuarial
software
Short term professional training programs in other areas of insurance like
underwriting, marketing, risk management, insurance accounting and
finance
Joint research projects and conferences with the UConn Actuarial Center
Creating an experience database for the pricing and managing of
Life and General Insurance products
Developing a framework of actuarial standards and principles built
around the experience database as a foundation for the insurance
industry of the developing country
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Sources of Funding
• Mainly US and domestic companies doing business
in the developing country
– Exclusive arrangement with a single major multinational
company
– Pool of funds via a tax levied on all companies
• International funding agencies like World Bank, IMF,
USAID, etc.
• US government and the government of the
developing country
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Current Projects
Negotiations undertaken with the following countries or
organizations:
– Brazil
• Seed funding provided by a major insurer to establish institute
• Academic program launched in 2005
– Tanzania
• Commitment by highest level of regulators to use taxing power to
provide initial funding for the Institute
• Memorandum of Understanding on education and training signed
– India
• In correspondence with world class Indian Institute of Management to
champion project
– China
• Relationship developed between Tsinghua University and the Deloitte
UConn Actuarial Center
– Dubai
• Relationship developed with Dubai International Financial Center to
set up a Center of Excellence in Dubai
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Marketing Strategy B
Student Outsourcing Services
•
•
•
•
•
Combine the academic resources & talent of UConn with the professional expertise of
Deloitte for actuarial consulting projects
Deloitte will utilize top graduate students at UConn as a part of its consulting team
Deloitte will supervise and manage the entire project to ensure that it complies with
the highest consulting standards of Deloitte
The project will provide research associateships for students involved:
– Students will work on campus at UConn, Storrs and meet with Deloitte
– supervisory staff as needed in the Hartford office of Deloitte
– Students will have full access to state of the art computing facilities, statistical &
actuarial software systems available on campus to do in-depth and exploratory
analysis needed for the project
Utilization of students can provide a comprehensive analysis of the project to be done:
– A broad range of scenarios could be tested
– Different analytical tools could be used and compared
– Alternative solutions could be analyzed
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Sources of Funding
Clients requesting consulting services
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Representative Projects
•
Post Retirement Financial Planning Model
–
–
–
•
Only financial planning model in existence which addresses all the risks facing the retiree in an integrated fashion – investment, longevity,
morbidity, and inflation risks
Determines optimal asset allocation strategies combining insurance & investment products to maximize value to retiree
Uses complex stochastic modeling techniques to determine optimal solution
Pre Retirement Financial Planning Model to create an individually managed DB plan written a DC plan
•
Dynamic GAAP Disability Claim Reserving Methodology
–
–
•
Actuarial procedure to explicitly recognize short-term fluctuations in DI claim reserves
Statistically rigorous procedure to adjust morbidity rates for long-term experience trends
Comprehensive reinsurance pricing software model for Property & Casualty coverages
–
–
•
Historical loss development & trend analysis
Choice of an appropriate statistical model for exposure rating and determining reinsurance premiums
Experience studies projects for the SOA
•
Secondary market in insurance
–
–
Alternative strategies to provide liquidity to impaired policyholders
Securitization of secondary market assets
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Summary
• The UConn Actuarial Center is a unique
partnership between academia and the
industry that will benefit the actuarial
profession and the insurance industry by
having :
– A planned experiential form of education in
Actuarial Science & Risk Management
– A strong industry partner for professional
expertise & financial support
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