We provide insight into the complex worlds of financial instruments, Basel II and actuarial science.
We provide insight into financial instruments, Basel II and actuarial science.
KPMG has well established Actuarial practice in seven Asia Pacific countries. Together we have more than 140 actuarial professionals to serve our client needs. We provide actuarial advice to clients and KPMG offices based in Hong Kong and Mainland China as well as other Asian countries. Our flexible resourcing model allows other member firms to draw on our actuarial expertise from across Asia as well as specialists in Europe and America.
Where we have helped clients before
KPMG actuarial assisted a global insurance group which was interested in acquiring an insurance company for tactical expansion. We performed Actuarial due diligence to provide deep insight into the financial position of the target. Our client subsequently acquired the company based, in part, on the insights we provided.
Understand the regulation
KPMG Actuarial delivered research on Policyholder Protection Funds (PPF) to a global insurer. This included structural considerations of a PPF, regulatory context and detailed case studies of historical insolvencies in the Asia Pacific region. We helped the client to better understand Policyholder Protection Funds and to more effectively communicate this understanding to its various stakeholders.
KPMG Actuarial supported the pension plan restructuring of a company which had recently undergone a merger. We studied the financial impact of switching to a new pension scheme through modeling future employee benefit cash flows. With our advice in hand, our client successfully implemented a new pension scheme and effectively communicated the change to its employees.
Enhanced control process
KPMG Actuarial reviewed the internal control of the pricing and reserving processes for a global bancassurer. We walked through the processes and controls to identify improvement areas. Our client was able to enhance its actuarial control processes and to mitigate the associated operational risk based on our advice.
KPMG Actuarial work with many global insurers to assure the correctness of actuarial items in their financial statements. We have reviewed their liabilities and business values to ensure compliance under different financial reporting bases and regulations. Our clients could report their financial positions timely and with confidence.
KPMG supported a medium sized life insurer in mainland China in building its economic capital (EC) model. We constructed an EC model for market risk, credit risk, insurance risk and operational risk, as well as developed risk indicators for liquidity risk, strategic risk and reputational risk. This laid a good foundation for complying with the comprehensive risk management requirement imposed by the regulator.