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Insurance and pensions accounting, reserving & audit

We advise companies regarding appropriate reserving methodologies under various accounting bases, including local regulatory bases in numerous jurisdictions in Asia Pacific, US GAAP and IFRS. We also provide audit support services to attest to the accuracy of reserves established by Deloitte's audit clients.
We have reviewed, in an advisory capacity, the US GAAP liabilities and deferred acquisition costs for various insurers who must report on a US GAAP basis and who were seeking advice from consultants other than their auditors.

Insurance reserving
Insurance policy liabilities are usually the most significant liabilities on the balance sheets of non-life insurers and reinsurers. Policy liabilities consist of claim liabilities and premium liabilities. Their adequacy has significant impact on the profitability, solvency and capital management of an insurer.

Deloitte Actuarial & Insurance Solutions has a wealth of experience on outstanding claim reserve reviews including problematic classes such as long-tailed employees’ compensation and motor bodily injury claims, and latent claims such as asbestos, pollution and health hazards. We have also provided second opinions on reserve review analyses completed by internal actuaries of many large international corporations.

We have proven experience in providing results in accordance with the accounting and regulatory requirements of most Asian countries including China, Hong Kong, India, Indonesia, Malaysia, Singapore, Thailand and Vietnam. The quality of our work is highly respect by the key regulators in the region.

In countries such as Singapore, Malaysia, Hong Kong and Thailand, we have also helped many insurers and reinsurers determine appropriate levels of risk margins. Adequacy of data is always an issue with these calculations and whilst we use sophisticated stochastic reserving packages on our clients' data, we most often blend these results with our won extensive database of benchmarks that we have built up over the past decade.

When presenting results we pay particular attention to communicating the implications of our results on the profitability of the underlying business. In this way we can provide additional value to our clients by commenting on recent and past performance of the business lines, and can highlight trends in experience at an early stage. We carry out a series of reasonableness tests to ensure that our results do make sense in relation to the market and for this purpose we pay close attention to all of the markets in which we operate.

We also encourage our clients to monitor their reserving during the year in order to minimize possible unexpected surprises.

We have worked with many insurers and reinsurers in the Asia Pacific region. In Hong Kong, for example we have worked with 19 out of the top 30 insurers and, elsewhere in the region such as Singapore, where we have worked with over 25 insurers.

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