Life Insurance

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+971 4 876 8530

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info@luxactuaries.com

LIFE INSURANCE

The Life team of Lux has extensive experience in the following services:

Appointed/Registered Actuary

Lux is the appointed Actuary to a number of leading Insurance Companies, with services including the review of statutory figures prepared by the internal actuarial department and/or appointed actuaries. We currently have Appointed/Registered Actuaries roles in a range of jurisdictions in Europe and the Gulf including KSA, Dubai, Jordan, Cyprus, Malta and Bulgaria.

Reinsurance Assessment

Our Reinsurance Assessment services includes providing our opinion, with supporting evidence, on various reinsurance arrangements that the client is considering implementing or has implemented. We review the reinsurance programs in detail, assessing the adequacy of cover by reinsurers and considering the reinsurers strength by running a number of predefined metrics to derive the optimal reinsurance strategy.

Asset-Liability Management

Our Asset-Liability Management Studies include identifying all material risks arising from the Client’s assets and liabilities and their interaction. We then assess the underlying causes of each risk, the relationships between risks and external factors such as the financial environment and macroeconomic factors and the Client’s solvency position and risk tolerances. The aim is to derive the optimal investment strategy in terms of risk and capital requirements as well as maximising expected yield.

Product Gap Analysis, Product Design & Profit Testing

We carry out product gap analysis exercises to identify areas of potential improvements by either introducing new features on existing products or new products. Following discussions with Management we design an optimum product structure, fully profit tested. During this procedure we build sophisticated models and, working together with the client’s technical departments, we calibrate these models based on company and market past experience. We then set capital requirements and input the required profit margins, as determined by Management, to goal-seek the charging basis that will generate the required margin.

Embedded Value Calculations

As part of our Embedded Value Calculations service, we build cash-flow projection models that capture the present value of future profits based on all policies currently on the client’s books in order to determine the in-force value of the portfolio. In addition to the in-force value we adjust the net asset value to derive the full Embedded Value and, if required, include new business levels to capture the Appraisal Value of the subject company. This can be done for a number of purposes such as disclosure in the company’s accounts, or for due diligence in M&A activity, or other instances where the basis used in the projections may vary.

Life Board & Management Training

We provide in-depth technical training for Management in a number of areas, such as Decision making processes, by embedding risk based capital approaches. As part of the training program we develop and document key processes including Governance, Underwriting, Sales and Understanding & Developing Key Performance Indicators.

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Overcoming Life Insurance Challenges in Kenya

Life insurance plays a crucial role in financial security, protecting individuals and families from unexpected hardships. However, in many African markets, including Kenya, life insurance penetration remains low. At just 1.3% of GDP, Kenya lags significantly behind markets like South Africa, where penetration stands at an estimated 9.4% of GDP. Given Kenya’s youthful population and growing economy, one might expect higher adoption, yet several structural and cultural factors have contributed to this gap.

Actuarial Financial Planning for Insurance Companies and Employee Benefits Schemes

Financial planning is essential for the stability and success of any organisation. It is especially vital for institutions like life insurance companies and pension schemes, which manage substantial funds and have long-term liabilities. Effective financial planning from an actuarial perspective enables these entities to meet their obligations, manage risks, and ensure sustainable growth.

GCC Insurance Performance in FY2024: Key Insights and Emerging Trends

Despite macroeconomic and operational challenges — ranging from extreme weather events to the introduction of corporate tax in the UAE — the GCC insurance sector ended FY2024 on a profitable note. Listed insurers across the region posted a combined after-tax profit of USD 2.1 billion, underscoring the sector’s resilience in an evolving landscape.