Balance sheet management touches all facets of the insurance business, on a tactical and strategic level. Balance sheet management is needed for recurring activities such as capital management, capital generation analysis and the ALM process. But it is also used for product development & pricing, investment decisions and M&A. Good balance sheet management brings together specialisms to increase success. The fact that specialisms are spread over different departments or even through consultants makes efficient collaboration or the same language difficult. This makes it difficult to come to a consistent conclusion and strategy. Consider, for example, actuarial expertise on risks in provisions and product design, or expertise in the field of investments, risks, financial models, capital sources, compliance and strategy.

Cloud solution for integrated balance sheet management

The integrated balance sheet management solution from associate partner MavenBlue brings specialisms together. It works quickly, efficiently and is consistent. For example, an insurer can sustainably take over risks from customers based on efficient, fast decision-making at fair and competitive prices. Unique to this solution is that you can now do complex analyses yourself. It is also a cloud solution, so you do not have to worry about installations and updates, both in terms of technology and regulations. The package is currently being expanded with IFRS 17.

An insurer - and member of the Association - that already works satisfactorily with this solution for balance sheet management is Onderlinge 's-Gravenhage. She introduced MavenBlue's Balance Sheet Management cloud solution (BSM) in early 2021. This gives them better and more frequent insight into the effect of the expected future business operations and various economic scenarios on the balance sheet. This allows the insurer to project the balance deterministically and stochastically into the future, including for ORSA and ALM studies. The insurer can configure the balance sheet, the strategy with management actions, and the economic and insurance scenarios. At Onderlinge 's-Gravenhage Sprenkels & Verschuren (partner of the Association) took care of drawing up and delivering the economic scenarios.

A completely different application is the Enterprise Pricing Management cloud solution (EPM). Covenant member Unigarant is no-nonsense, innovative and likes to be at the forefront of fair pricing. Unigarant was therefore the first Dutch insurer to put this cloud solution into production. With EPM, Unigarant has further optimized its pricing process. One of the success factors in this is the ability of EPM to link with policy and claims administrations, such as Axon from Keylane. As a result, the import of policy and damage data is arranged with the click of a button. Important insights into, for example, the portfolio, rates, profitability and new production are therefore immediately available.

This highly secure cloud solution allows you to calculate even the largest portfolios in a split second, audit processes out-of-the-box and easily share results with colleagues. EPM effortlessly applies well-known, widely used techniques such as Generalised Linear Models, and can properly process new, computationally intensive techniques that use machine learning: EPM can quickly, easily and automatically create risk models and detect the most important changes in existing risk models. Actuaries and pricing experts can analyze the proposed model changes, adjust them if necessary and process them into rate adjustments and new rates.

Wondering if MavenBlue can also work for your organization? Joost van Bruggen, partner of MavenBlue, is happy to help you (06-42690986). You can also contact Hilde Spithost, manager actuarial at Unigarant about EPM or Peggy Ariessen, actuary balance management at Onderlinge 's-Gravenhage about BSM. You can reach them through the general numbers of their organizations.