AZURIA / Verification of Valuation Results
“How Azuria helped a major Life Insurer verify their valuation results”
The Project – The client sought an independent model review through the build of a parallel model and comparison of results.
Project Requirements
- Independent Income Protection expected claims projection model build tailored for client products
- Technical understanding of Income Protection incidence and terminations interactions to calculate NPV of expected claims
- Interpretation of complex Prophet logic and code, including iterative time-series logic
- Comparison of test cases across both models to verify results
- Model debugging template build and investigation Documentation of model and testing for client handover and auditor purposes
Azuria Partner’s Contributions:
- Comprehensive Income Protection expected claims projection model built and documented
- Testing template built and discrepancies investigated for over 200 test cases
- Prophet logic bugs identified and escalated with client
- Models continuously enhanced after initial build to improve usability and user-friendliness
Results:
- Successfully verified Income Protection Prophet model and identified future fixes and enhancements
- Reduced compliance burden due to comprehensive documentation and user-friendly spreadsheet build
- Satisfied client experience through consistent updates provided and client feedback considered
