Services Offered

NAUMAN ASSOCIATES, since its inception in 1985, has been providing consultancy services in Pakistan in the area of Employee Benefits. Our valued clients include some of the most prestigious organizations in Pakistan belonging to the multinational, private and public sectors. Members of our actuarial team also have experience in servicing clients in other countries including Canada, Kenya and Uganda. 

In recent times there have been considerable changes related to accounting and reporting for Employee Benefits. Our Firm has been continuously monitoring these changes and updating its services accordingly. 

Our experienced team, armed with current knowledge, is able to provide comprehensive and effective advice to organizations that either wish to introduce, or already have Employee Benefit Programs (such as Pension, Gratuity and Post-Retirement Medical and Leave Encashment schemes etc.). 

We offer the following consultancy services for Post-Retirement Employee Benefit Programs (that is for Pension, Gratuity, Medical Schemes and other free or subsidized facilities) and Other Long Term benefit programs (such as leave accumulation and/or encashment): 

• Carrying out actuarial valuations to determine financial implications of introducing new schemes or varying benefits of existing schemes (this includes identifying one time and recurring costs).

• Assistance in selecting appropriate benefits, in view of an organization's objectives, prevalent norms and cost constraints.

• Carrying out a funding actuarial valuation to determine surplus/deficit, assessing appropriateness of existing funding strategy, and recommend changes where required.

• Assistance in devising appropriate strategy for financing of start up or benefit change costs.

• Preparation of trust deeds, rules and supplementary documents for administering the program.

• Assisting in preparation of reports for such programs according to specifications of prevailing International and Local Accounting Standards (such as International Accounting Standard 19 for reporting in Pakistan).

• Providing prudent advice on appropriateness of investment policies practiced by funded schemes in various allowed instruments, by analyzing their yields and taking into account the cash-flow requirements for benefit payments etc.

• Preparing cash flow projections for employee benefit schemes to assist Organizations in cash flow management and budgeting.

 

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NAUMAN ASSOCIATES  has been providing actuarial services to various Life Insurance Companies operating in Pakistan, Kenya, U.A.E, India and other countries, since 1990. 

We recognize that actuaries must provide advice which is technically sound. However, such advice will only be useful if company objectives and consumer and business environments are kept in view. This requires developing a keen sense of the client’s needs and environmental realities and forming an interactive alliance with the client to successfully achieve the required goals. 

We offer the following consultancy services to Life Insurance Companies: 

• Strategic Advice to achieve desired objectives.

• Product Development: formulating appropriate insurance products and riders, in harmony with company strategy and strengths.

• Product Pricing: ensuring insurance products and riders are competitive and adequately priced.

• Profitability Analysis: by different business segments (such as line of business, type of product etc.) and identification of areas requiring corrective measures.

• Actuarial Valuation: for fulfilling statutory requirements and providing management insight to the asset and liability values of its Life portfolio.

• Model Office Projections: assisting management in prudent and appropriate planning and budgeting by developing realistic business projections.

• Embedded Value Analysis: assisting management in getting a greater understanding of the true and fair value of its current and projected business.

• Asset Analysis: assisting management in determining appropriate composition of Life fund assets in view of the “type” and “term” of future obligations; type and terms of available investments; regulatory requirements; etc.

• Expense Analysis: assisting management in determining compatibility of priced expense margins with actual expenses, identifying inefficient and waste areas etc.

• Marketing Support: assisting management with distribution related issues for achieving effective business penetration and retention of policyholders in desired market segments.

• Systems Support: providing advice to management for optimizing operational efficiency of company’s computer systems, defining appropriate data storage requirements, designing appropriate and effective MIS reports etc.
  

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NAUMAN ASSOCIATES  has, since 1993, been providing actuarial services to insurers offering Health Insurance services in Pakistan, Kenya, U.A.E and other countries. 

Health Insurance is generally the fastest expanding segment of the insurance market, especially in emerging markets. The Health market potentially offers excellent returns to insurers PROVIDED they enter the business with sufficient preparation and continue to effectively monitor their business and growth. This line of business also has the risk of generating substantial losses if proper controls are not implemented. 

Over the years we, at Nauman Associates, have developed the technical knowledge and the business understanding of this particular market, so as to offer effective and prudent advice to our clients operating in this area. 

We offer the following consultancy services to insurance companies offering Health Insurance:

• Strategic Advice:  to enable the company to meet its goals.

• Product Development: formulating appropriate health and accident insurance products and riders, in harmony with the Company's strategy, strengths and market dynamics.

• Product Pricing: ensuring products and riders are competitive and adequately priced.

• Profitability Analysis by different business segments (such as line of business, type of product etc.) and identification of areas requiring corrective measures.

• Statistical Analyses to provide critical information to management for determining an effective course of future action.

• Valuation of Liabilities: reserve calculations for both in-force business and outstanding claims.

• Statutory Requirements: assisting in preparation of statutory reports.

• Model Office Projections: assisting management in prudent and appropriate planning and budgeting by developing realistic business projections.

• Expense Analysis: assisting management in determining compatibility of priced expense margins with actual expenses, identifying inefficient and waste areas etc.

• Statistical Studies: carrying out studies such as lapse analysis, mortality investigation etc.

• Marketing Support: assisting in distribution related issues (such as selection of best distribution channel).

• Systems Support: providing advice to management for optimizing operational efficiency of company’s computer systems, defining appropriate data storage requirements, designing appropriate and effective MIS reports etc.
  

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The reserves for most general insurance lines have traditionally been held between 40-50%, and in some cases as much as 100%, of premium based on requirements of the repealed Insurance Act 1938 or the Income Tax laws without consideration of actual business experience and prudent practice. Such an approach obviously gives a completely distorted financial picture. The Insurance Ordinance 2000 has split the reserves under various heads and mandated that they be held on prudent basis.

Nauman Associates is providing services in this area. We also provide assistance to general insurance in pricing certain products, particularly for personal lines or the ones that have the longer tail of claims. Apart from fulfilling statutory environment, our objective is that clients develop a greater understanding of their business.

We offer the following services for General Insurance business:

• Reserve Calculations for unearned  premium and and premium deficiency, as required under Insurance Ordinance 2000.

• Premium Determination for various lines, particularly the ones have relatively longer tail of claims.

• Statistical Studies to develop greater understanding of the business.

• Model Office Projections: assisting management in prudent and appropriate planning and budgeting by developing realistic business projections.

We offer a full range of services that will enable business decision makers to have access to timely and useful information regarding Pakistan’s financial services market-place. 

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