Solvency Capital Assessment Automation

The Challenge

Managing solvency capital requirements is a crucial challenge for cell captive insurers. Our client, a rapidly growing cell captive insurer, needed a way to quickly assess the capital requirements for prospective new first and third-party cells. Their existing systems were time-consuming, leading to delays in acquiring new cells.

Our Solution

Our actuarial team developed a cutting-edge solvency capital model that can be run in a fraction of the time. By leveraging actuarial techniques and automation, we were able to automate solvency capital assessments where the model processes all relevant data submitted by our client, allowing us to generate reports within 24 hours. The model aligns with the SAM (Solvency Assessment Management) framework, the regulatory standard for all insurance companies in South Africa.

The Results

Our client now receives solvency capital reports within 24 hours, a rapid turnaround that previously took significantly longer. The automated approach reduces manual effort, allowing us to answer follow-up questions quickly and provide additional insights. With timely insights, our client can now proactively manage their capital and reduce delays in decision making.

This project enabled our client to continue growing their business, ensuring that its cell partners meet solvency capital requirements accurately. As the insurance industry is highly regulated, we remain committed to helping insurers navigate regulatory capital challenges and build a more resilient future.