The current market leaders could run into some challengers.
Actuarial Risk Management (ARM) Enters Strategic Alliance With Prescience
AUSTIN, Texas, January 14, 2013 – Actuarial Risk Management, Ltd. (ARM), an independent member of the BDO Alliance, and Toronto-based Prescience Insurance Consultants and Actuaries (Prescience), a boutique provider of actuarial consulting and AXIS model support, today announced a strategic alliance to provide both, insurers (life, annuity and health) and reinsurers a new cost-effective outlet to manage the demands of converting, modeling, reviewing and managing the comprehensive actuarial models based on Toronto-based GGY’s AXIS model platform.
As part of the agreement, ARM and Prescience will jointly offer AXIS clients an alternative to delayed model implementations and expensive third-party conversion costs. This service offering will enable AXIS clients to tap a robust team of actuaries and consultants resting on a foundation of being experienced AXIS users. The team will conduct assignments ranging from project-specific to full turn-key outsourcing of client’s AXIS models. The agreement also will promote a host of other available non-AXIS actuarial advisory consulting on product design and financial reporting matters and acquisition (or disposition) strategies.
"From the beginning, our business model has resided on a foundation of team collaboration. This new arrangement simply strengthens Prescience’s U.S. market presence by combining ARM’s strong US regulatory knowledge with Prescience’s deep foundation of AXIS actuarial software knowledge,” said Corwin Zass, ARM Founder. Zass continued, “In light of GGY not providing their insurance clients with modeling or conversion consulting services, our service provides all AXIS clients with a required outlet for greater value support at a level of cost savings materially visible over any of the other AXIS supported actuarial consultants.”
Since 2006, ARM has acted as the de-facto actuarial service group for BDO USA, LLP, one of the nation's leading accounting and consulting organizations.
“ARM’s exclusive affiliation with BDO and ARM’s solid resource pool of US-based actuaries, many who have experience with other actuarial software platforms, are two key important attributes for us. Our new US client base will quickly recognize and appreciate our efficient and exemplary services that our many Canadian, Caribbean, and Latin American clients have enjoyed for many years,” said Paul Ngai, Principal of Prescience, a Toronto-headquartered actuarial firm. “Prescience brings a wealth of experience in constructing requisite AXIS support teams that, according to many of our clients, simply completes model conversions more accurately and quickly than any other of our competitors,” Ngai furthered stated.
Over the years both the actuarial and the accounting professions have stressed to the life insurance industry that sound actuarial control processes are central to an effective ERM program.
“As a result of the recent NAIC acceptance of a principles-based reserve and capital framework, our new alliance gives clients a new respected resource for independent peer reviews of their AXIS models too,” said Zass.
In 2006, the rationale for the initial formation of Actuarial Risk Management (ARM) and the subsequent entrance into the BDO Alliance was to consolidate for BDO, BDO Alliance firms and their clients a new single source for all actuarial matters. ARM couples internal ARM actuarial consultants with independent actuarial consultants residing within the ARM Network, which is a collection of tenured and experienced actuaries who bring substantive experience from their prior employment as practice leaders, chief actuaries, and other senior roles. Those same services offered by the larger actuarial consulting firms are also available from ARM and covers the same range of specialties across the insurance and self-insurance markets (life, casualty, healthcare), along with the complete gamut of employee benefits – both retirement and wellness.