B1 Graph: Actuarial calculations

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2024: Announcement of the automated solution "B1 GRAF: Actuarial calculations"

On April 24, 2024, the B1 Group of Companies announced the development of an automated solution "B1 GRAF: Actuarial Settlements" to assess the future cash flows of insurance companies and non-governmental pension funds (NPFs), including assessing the loss reserve.

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b1.ru

According to the company, the industry solution is implemented on the basis of the B1 GRAF platform (B1 Graph Designer of Mathematical Calculations) and combines an extensive methodological base of actuarial calculations with optimal computing performance.

In accordance with the requirements of IFRS 17, local requirements of the OSBU, 781-P and 806-P insurance companies and NPFs change the model of calculating cash flows in a fairly short time. As of April 2024, many are faced with a serious problem: the used IT tools cannot cope with the increased load at the required level, since we can talk about millions of contracts, hundreds of parameters, thousands of periods and several complex calculation models at once. The departure of Western vendors and the lack of ready-made specialized solutions on the Russian market further complicates the situation.

B1 GRAF: Actuarial Settlements ensures compliance with the Bank of Russia requirements and covers business needs in the following areas: life insurance, general insurance, compulsory pension insurance and non-state pension provision.

The solution allows you to assess future cash flows for losses that have occurred using deterministic and stochastic methods. The pre-configured functionality includes the method of bootstrap, independent increments, chain ladder, Bornhuetter-Fergusson, separation (quantity and average), simple loss-making method and Cape Cod.

In terms of the provision for future losses (the provision for premiums), the solution uses the method of constructing cash flows based on the expected loss and expense level in relation to the future earned premium.

For NPFs, the system implemented the calculation of cash flows to take into account pension contributions, targeted contributions of legal entities, redemption amounts/transfers to another NPF upon termination of the contract by a participant/insured person, death payments, payments of assigned pensions or lump sum payments, as well as the calculation of expenses for maintenance of contracts and expenses in terms of payments to management companies, a specialized depository, DIA.

Additional feature "B1 GRAPH: Actuarial calculations" - flexible and quick adjustment of calculation models without knowledge of programming languages. Thanks to the built-in libraries of mathematical functions and the ability to visually adjust the calculated the actuary can independently make all the necessary modifications in the shortest possible time.

At the same time, changes are recorded and tracked in the system, access rights management and master versions of calculations are implemented - this ensures transparency of methodology, configuration of models, logic and sequence of calculations as for users, and for auditors.

The integrated ETL module supports direct integration with source systems, validation and monitoring of downloaded data. In this way, the reliability of the results and the minimization of errors due to the human factor are achieved.

{{quote 'author
= noted Andrey Kuzmin, B1 partner, head of the department of consulting, technologies and transactions' Solution B1 "GRAF: Actuarial calculations" is the result of synergy of business and technological consulting B1. Experts of the group of insurance and actuarial solutions have invested in the product methodological functionality and their deep industry expertise, and technology consulting practice has developed a productive platform. For example, the calculation of 2.2 trillion indicators in B1 GRAF will be only 3.5 hours - this is 2 times faster than the benchmarks of Western specialized systems. And in tools like Excel, Access, a similar calculation can take up to a few days.}}

B1 GRAF: Actuarial Settlements for insurance companies and NPFs is a tool that allows calculating cash flows in accordance with the requirements of the Bank of Russia in a short time, ensuring flexibility and transparency of the process. The results of calculations can be used to prepare financial, regulatory and management reports, in budgeting, profit testing and billing of insurance and pension products and solving other problems related to a large amount of calculations.