Richard de Haan, PwC's global and US risk modelling services leader, explains how the audit and consulting firm's vast experience and expertise has supported insurers with LDTI every step of the way
How has PwC been helping insurers with LDTI?
With over 750 trained staff and over 150 completed implementation projects, PwC has been at the forefront of providing services and developing solutions that help clients accelerate their LDTI implementations. Our practice has also developed a number of tools and accelerators to simplify the LDTI implementation process for our clients, which are encapsulated in our "LDTI Simplifier" solution offering.
What solutions has PwC offered clients and how has that benefitted them?
PwC's "LDTI Simplifier" offering has de-risked and accelerated a number of insurer's LDTI implementation journeys. The offering has supported all major phases of execution across: Phase 1 - impact assessment; Phase 2- implementation and phase 3 - transition.
For phase 1, we developed a suite of financial models that provide early direction on the potential financial impact of LDTI, as well as provide education on the wider impacts of LDTI across operations and roadmap to delivery. For phase 2, PwC developed tools to help clients make informed accounting policy decisions, identify potential data processes and control gaps, assess technology vendors, and configure technology solutions. For phase 3, our team developed LDTI Management Reporting frameworks to enable clients to monitor and communicate LDTI performance.
These tools have benefitted our clients by reducing the risk of surprises or rework due to poorly informed decisions. They have also saved clients' time and effort in implementation and supported the transition of LDTI from a special project to a business as usual activity far more efficiently. Additionally, PwC's LDTI Simplifier has enabled 2025 filers to benefit from the lessons learned of the 2023 filers.
What technology solutions has PwC offered?
PwC offers a range of technology solutions to help clients across their end-to-end LDTI journey, pre and post implementation. Our team has built solutions in actuarial, finance, investments, reporting and workflow systems to support and deliver efficient LDTI reporting; including illustrative financial statements, profit signature illustrator, data sourcing and lineage, chart of accounts discovery, accounting rules accelerator, automated process and controls accelerator, to name a few. PwC has also developed cloud hosted capabilities to support the ongoing analytics and reporting needs including a range of managed services. Finally, we offer LDTI training platforms to upskill finance and actuarial teams.
Now that LDTI has gone live, what is next for LDTI in the US insurance market?
Now that LDTI is the new reality already for some life and annuity carriers, attention is turning to post adoption activities including: (1) remediation activities to improve the effectiveness of day 1 solutions and address any initial deficiencies; (2) optimisation of earning profiles and managing the potential additional volatility under LDTI reporting; (3) reviewing strategic growth and acquisitions opportunities; and (4) maximising the investment in underlying technologies from LDTI and accessibility to more granular data to deliver new analytical capabilities across a range of areas including FP&A, experience studies and risk management.
Beyond LDTI, how is PwC's Risk Modeling Services' practice helping insurance companies?
Our team has extensive experience assisting life, P&C, health and reinsurance companies with finance, actuarial, investments and risk (FAIR) modernisation and reporting; risk and capital optimisation; product development and pricing; value analyses and deals support; assurance services; managed services and underwriting and claims optimisation.
How are you helping clients beyond the insurance industry?
Our practice, composed of 2,300 people globally and 340+ in the US, changed our name from "Actuarial Services" to "Risk Modeling Services" in May 2022. The rebrand reflects our strategy to bring actuarial and risk modeling insights so clients can act decisively on the issues that really matter.
Our integrated team of actuaries, data scientists, climate scientists, financial engineers and geospatial engineers focus on ESG/climate risk modelling, advanced financial modeling, corporate risk modelling, insurance modeling and trust modeling including, but not limited to:
- Providing solutions to important climate risk problems through our modelling capabilities and proprietary Geospatial Climate Intelligence solution
- Advanced Finance Analytics - PwC's digital solution to help bring better/faster information to strategically manage financial and risk metrics
- Delivering model validation services to companies that need to trust their complex models (i.e., machine learning, artificial intelligence) used to make business decisions or report their results
