ACTUARIAL PROJECTS COMPETITION
LIFECO CASE - TEMPLATES
© Oliver Wyman
Template
LifeCo Case Study
Problem definition worksheet
Situation (Key facts)
Complication (Call to change)
Key question
Key sponsors
Key decision makers
Client’s criteria for success
Solution Space (In Scope)
Other possible solutions (Out of Scope)
Barriers to impact?
© Oliver Wyman
1
Template
LifeCo Case Study
Issue analysis worksheet
Hypothesis
Issues
© Oliver Wyman
Sub-issues
(to prove, disprove)
Data required
Assumptions made
2
Template
LifeCo Case Study
Manufacturing options to be defined
Manufacturing
options
Margin
Volume
Degree of
client
ownership
High
Low
High
Product profit potential
Description
New capabilities
required
1
Current LifeCo
annuity
 Current approach
 None
2
LifeCo annuity with
tactical discounts
3
Broader LifeCo
annuity product
range
4
Provide 3rd party
product
© Oliver Wyman
3
Template
LifeCo Case Study
Advice / distribution models to be defined
Intensity of advice
-
A
+
Improved vesting process
Internal vesting
(no advice)
Proposition
 Provide clients with a rate
on LifeCo conventional
annuities
 Follow regulatory
retirement process for
client information
Revenue
model
• Existing
B
Guided retirement by LifeCo
Website + streamlined advice
over the phone
C
Full Advice by LifeCo
Website + Advice over the
phone
C
IFA distribution (OMO)
Third party distribution
Relative costs
• Existing
© Oliver Wyman
4
Template
LifeCo Case Study
Final recommendation may include several combinations of advice and
manufacturing options
Advice options
Improved vesting
process (no advice)
Guided retirement
process by LifeCo
Full advice by LifeCo
IFA distribution (OMO)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Manufacturing options
Current LifeCo
annuity
LifeCo annuity
with tactical
discounts
Broader LifeCo
annuity product
range
Provide 3rd party
product

© Oliver Wyman
= Viable option

= Viable to supplement another option

= Not viable
5
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ASSUMPTIONS AND LIMITING
CONDITIONS
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