Deloitte UConn Actuarial Center Philosophy

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DeloitteUConn Actuarial CenterPhilosophy
Marketing Strategy
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Mission Statement

• To integrate the academic resources of UConn with
  the professional expertise of Deloitte in order
  to enhance actuarial education, training and
  applied research.

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Philosophy

• Partnership between UConn Deloitte is dynamic
• Director of the UConn Actuarial Center is an
  employee of both Deloitte UConn
• All the activities of the Center attempt to
  balance both the education and research goals of
  UConn as well as the consulting and business
  advisory services of Deloitte

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Industry Trends

• US
• Shift towards investment oriented products with
  guaranteed options
• - Variable annuities with GMAB, GMIB, GMDB
  riders
• - Variable life with no lapse guarantees
• Focus on retirement products
• Focus on Principle Based Reserving and use of
  companys own experience to set minimum reserves
• Enterprise Risk Management
• Developing Economies
• Strong insurance infrastructure and good risk
  management practices
• Market conduct practices
• Insurance products for local needs.

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Marketing Strategy

• Two components
• Insurance Infrastructure Development
• Student Outsourcing Services

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Marketing Strategy A Insurance Infrastructure
Development

• 3-tiered approach
• Setting up an Institute of Risk Management at a
  top university in a developing country to
  incorporate
• A unique academic degree program in Actuarial
  Science, which includes a curriculum of education
  in the fundamental theory of Actuarial Science as
  well as formal practical training using state of
  the art actuarial software
• Short term professional training programs in
  other areas of insurance like underwriting,
  marketing, risk management, insurance accounting
  and finance
• Joint research projects and conferences with the
  UConn Actuarial Center
• Creating an experience database for the pricing
  and managing of Life and General Insurance
  products
• Developing a framework of actuarial standards and
  principles built around the experience database
  as a foundation for the insurance industry of the
  developing country

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Sources of Funding

• Mainly US and domestic companies doing business
  in the developing country
• Exclusive arrangement with a single major
  multinational company
• Pool of funds via a tax levied on all companies
• International funding agencies like World Bank,
  IMF, USAID, etc.
• US government and the government of the
  developing country

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Current Projects

• Negotiations undertaken with the following
  countries or organizations
• Brazil
• Seed funding provided by a major insurer to
  establish institute
• Academic program launched in 2005
• Tanzania
• Commitment by highest level of regulators to use
  taxing power to provide initial funding for the
  Institute
• Memorandum of Understanding on education and
  training signed
• India
• In correspondence with world class Indian
  Institute of Management to champion project
• China
• Relationship developed between Tsinghua
  University and the Deloitte UConn Actuarial
  Center
• Dubai
• Relationship developed with Dubai International
  Financial Center to set up a Center of Excellence
  in Dubai

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Marketing Strategy B Student Outsourcing Services

• Combine the academic resources talent of UConn
  with the professional expertise of Deloitte for
  actuarial consulting projects
• Deloitte will utilize top graduate students at
  UConn as a part of its consulting team
• Deloitte will supervise and manage the entire
  project to ensure that it complies with the
  highest consulting standards of Deloitte
• The project will provide research associateships
  for students involved
• Students will work on campus at UConn, Storrs and
  meet with Deloitte
• supervisory staff as needed in the Hartford
  office of Deloitte
• Students will have full access to state of the
  art computing facilities, statistical
• actuarial software systems available on
  campus to do in-depth and exploratory
• analysis needed for the project
• Utilization of students can provide a
  comprehensive analysis of the project to be done
• A broad range of scenarios could be tested
• Different analytical tools could be used and
  compared
• Alternative solutions could be analyzed

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Sources of Funding

• Clients requesting consulting services

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Representative Projects

• Post Retirement Financial Planning Model
• Only financial planning model in existence which
  addresses all the risks facing the retiree in an
  integrated fashion investment, longevity,
  morbidity, and inflation risks
• Determines optimal asset allocation strategies
  combining insurance investment products to
  maximize value to retiree
• Uses complex stochastic modeling techniques to
  determine optimal solution
• Pre Retirement Financial Planning Model to create
  an individually managed DB plan written a DC plan
• Dynamic GAAP Disability Claim Reserving
  Methodology
• Actuarial procedure to explicitly recognize
  short-term fluctuations in DI claim reserves
• Statistically rigorous procedure to adjust
  morbidity rates for long-term experience trends
• Comprehensive reinsurance pricing software model
  for Property Casualty coverages
• Historical loss development trend analysis
• Choice of an appropriate statistical model for
  exposure rating and determining reinsurance
  premiums
• Experience studies projects for the SOA
• Secondary market in insurance
• Alternative strategies to provide liquidity to
  impaired policyholders
• Securitization of secondary market assets

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Summary

• The UConn Actuarial Center is a unique
  partnership between academia and the industry
  that will benefit the actuarial profession and
  the insurance industry by having
• A planned experiential form of education in
  Actuarial Science Risk Management
• A strong industry partner for professional
  expertise financial support