The gradual, and then dramatic, falls in asset values and investment returns have accentuated the difficulties of many players in many life markets. Those with strong brands and distribution remain well placed, and others have focused on spreading business risk by investing in growth in emerging markets in Europe and elsewhere.
Whatever the strategic positioning of the company, a clear assessment of financial liabilities and of risk is critical. Those who understand the balance of risk and return in their business will be best placed to deploy capital effectively and to capture market share.
Our life actuarial team is increasingly involved in helping insurers understand value, risk and return. Our work on Asset Liability Modelling and on Risk Based Capital is underpinned by these stochastic and economic modelling techniques. Our advisory capability has been widely deployed – throughout Western and Eastern Europe and in many other countries worldwide.